Shri Mutru Uraon v. The Andaman And Nicobar Administration And ORS.

IN THE HIGH COURT AT CALCUTTA

[ CIRCUIT BENCH AT PORT BLAIR *** WPA/583/2023 Shri Mutru Uraon Vs.

The Andaman and Nicobar Administration and others Mr. KMB Jayapal [through virtual mode] Mr. C.Mano ... for the petitioner Mr. V.D.Sivabalan ... for the respondent No.1.

Ms. A.S.Zinu ... for the respondent nos.2&3 November 22, 2023 [SR] Item No.24

1. This writ petition is filed challenging the action taken by the Bank under section 13(2) of the SARFAESI Act. It prima facie appears that the property was mortgaged by the writ petitioner as a surety for the loan granted to the principal borrower.

2. The principal borrower has failed to discharge the debt as a result whereof a proceeding under the SARFAESI Act has been initiated by the writ petitioner against the guarantor.

3. It is trite law that under the SARFAESI Act, the Bank can proceed against the surety directly without there being any requirement to proceed against the principal borrower. Moreover having regard to the fact that the original title deed was deposited with the bank by the writ petitioner, a prima facie case of the security the debt be extended to the principal borrower stands established. In the event a person is aggrieved by the action of the petitioner, the SARFAESI Act itself provides for a remedy. [See United Bank of India vs. Satyawati Tondon & Ors., 2010 (8) SCC 110].

4. On such consideration, this court do not find any reason to interfere with the notice issued by the Bank. However, the order shall not prevent the petitioner to approach the appropriate Tribunal in accordance with law.

5. The writ petition stands disposed of, however, there shall be no order as to costs.

6. Urgent certified photocopy of this order, if applied for, be supplied to the parties upon compliance of usual formalities. ( Soumen Sen, J. )