WP/32077/2021 of Pabba Vijay Kumar and 2 Others Vs The Union of India and 2 Others on 30 December 2021

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original J urisdiction)

THURSDAY, THE THIRTIETH DAY OF DECEMBERTWO THOUSAND AND TWENTY ONE

PRESENT

THE HONOURABLE SRI JUSTICE UJJAL BHUYANAND

THE HONOURABLE SMT JUSTICE P.MADHAVI DEVI

WRIT PETITION NO: 32077 OF 2021

Between:

L Pabba Vijay Kumar, S/o. Pabba Balaramaiah, Aged about 60 years, Occ.Business, R/o.H.No.2-2-18154, D.D.Colony, Vidya Nagar, Hyderabad-13.Business, R/o.H.No.2-2-18154, D.D.Colony, Vidya Nagar, Hyderabad-13.

2. Pabba [Vlaheshwari, W/o. Pabba Vijay Kumar, Aged about 56 years, Occ. Housewife, Rl/o.H. No. 2-2-1 81 54, D.D.Colony, Vidya Nagar, Hyderabad-1 3.wife, Rl/o.H. No. 2-2-1 81 54, D.D.Colony, Vidya Nagar, Hyderabad-1 3.3. Vishwaksen lndustries P\t. Ltd.,3rd Floor,3-6-612/613, Himayath Nagar,Hyderabad. Rep.by its Director Sri Pabba Vijay Kumar, S/o. Pabba Balaramaiah,Aged about 60 years.Hyderabad. Rep.by its Director Sri Pabba Vijay Kumar, S/o. Pabba Balaramaiah,Aged about 60 years.

...PETTTTONER(S)

AND

1The Union of lndia, Department of Financial Services Ministry of Finance, 3rdFloor, Jeevan Deep Blilding, Sansad Marg, New Delhi-l 1000'1 .Floor, Jeevan Deep Blilding, Sansad Marg, New Delhi-l 1000'1 .2M/s. Cholamandalam lnvestment and Finance [po. ]Ltd., Regd. Office DaraHouse, First Floor, No.2, NSC Bose Road, Chdnnai-600001 . Rep. by itsAuthorised Officer.House, First Floor, No.2, NSC Bose Road, Chdnnai-600001 . Rep. by itsAuthorised Officer.

3. M/s. Cholamandalam lnvestment and Finance Co. Ltd., And its branch office atH.No.7-1-59/2, 59/6 102 1St floor, Mandana tower, Ameerpet, Hyderabad-500016. Through its Authorized Rep.by il/r.M.Laxman, S/o.M.Veeraiah, Agedabout 38 years, R/o. Hyderabad.H.No.7-1-59/2, 59/6 102 1St floor, Mandana tower, Ameerpet, Hyderabad-500016. Through its Authorized Rep.by il/r.M.Laxman, S/o.M.Veeraiah, Agedabout 38 years, R/o. Hyderabad.

...RESPONDENTS

Petition under Article 226 of the Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may be pleased toissue any Writ, order or direction more particularly one in the nature of writ ofMANDAMUS declaring the action of the respondents 2 and 3 in issuing the impugnednotice dated 0910812021 under Sec. 13(2) and possession Notice dated 2511112021under Sec.13(4) of the SARFAESI Act as arbitrary, illegal and without jurisdiction andin violation of the provisions of SARFAESI Act and consequently set aside the same.

lA NO: 1 OF 2021

Petition under Section 151 CPC praying that In the circumstances stated in theaffidavit filed in support of the petition, the High Court may be pleased to grant stay ofall further proceedings including slay of auction of the petitioners' house property inpursuance to the possession Notice daled 2511112021 under Sec.13(4) of the SARFAESI Act issued [by ][the ][2nd ][respondent, pending ][disposal ][of ][the ][above ][writ]petition.

Counsel for the Petitioner(s): [Ms. D. PADMAVATHI]

counsel for the Respondent [No.1: ][SRI ][MUKHERJEE APPEARING ][FoR ][ASSGI]

Counsel for the Respondent [Nos.2 ][& 3: ][SRI ][V. SANTOSH](M/s. CHOLAMANDALAM INVESTEMENT [AND ][FINANCE ][Co' Ltd')]

The Court made the following: [ORDER]

(

HONOURABLE SRI JUSTICE UJJAL BHI-IYANANDHONOURABLE SMTJUSTICE P. MADHAVI DEVI

W.P.No.77 of202l

Orderz [per ]Ilon'blt Si lultit L|ljal Bhryanl Heard Ms.D.l)admavathi, learned counsel for the petitioners;Mr. Mukherji, learrrcd counscl appcanng on bel-ralf of learned AssistantSolicitor Gcncral of L.rdia lor rcspondent No.1 afld Mr. V.Santosh,learned counsel frrr respondenrs No.2 and 3/N,{/s.CholamandalarnIn'u.estmcnt & Iiir-rancc Co. l,td

2. By Eling this petition under Arricle 226 of the Constirution ofIndia, petitioners har.e challenged the legahty and va-lidiry of thepossession notice dated 25.11.2}z1issued btyrespondents No.2 and 3. Asper the said notice, respondeflts No.2 and 3 have stated that an amount of

Rs.22,05,634.83 is outstanding as on 0(r.08.2021

3. On 06.12.2021, rve had passed the follouir.rg interim order.

"Pr:titioncrs har.c challcugcd possess.iorr n()ncedlted 25.11.2021 rssued b\,'rcsprxrdenrs No.2 and 3/Cholamandalarndlted 25.11.2021 rssued b\,'rcsprxrdenrs No.2 and 3/CholamandalarnInvestment and }irnarrce Company Ltnited under Ruie 8(1) of theSecudry Interest (Iinforcement) Rules,2002. On a query by the courtas to why thc petitioncrs have not approached the jurisdictionalDebts Recovery ['l'ribunal ]under Scction 17 of the Securitisation andDebts Recovery ['l'ribunal ]under Scction 17 of the Securitisation andReconstruction of Frnancial ,tssets and Enforcement of SecurityIntetest 4ct,2002 (bnefly, 'the SARFAESI Act'hereinaftet) aldIntetest 4ct,2002 (bnefly, 'the SARFAESI Act'hereinaftet) aldinstead have filed the wnt petiuon, leamed counsel fot the peribonershas placed reliance on a notiJicafion dated 25.08.2021 of the ReserveBank of Ildia noti$ring such institutions as finalcia.l institutionsBank of Ildia noti$ring such institutions as finalcia.l institutionsurithin the meaning of Section 2(1)(m)(rv) of the SARFAESI Act.

Pnmafacte, writ petitron may flot be maintainable as respondeltNos.2 ar,d 3 are purely pnvate entities.Nos.2 ar,d 3 are purely pnvate entities.

\os [2]I,eamed counsel [for ]respondetrt and 3/Cholamanda.lam [Iuvestmerlt ][and ][Finatrce ][Company ][Limrted]seeks trme to [examine this ][aspect ][of ][the matter.]

4. lrarned counsel for the [petitioners submits ][that ][w'hen there ][is]infractioo of statutory [provisions, ][a ][writ ][would ][be ][maintainable]the [fact that ][the ][respondent ][is ][a ][private ][entity' ][In]notwithstandiflg support of this contention, [she has placed reliance ][ofl ][a ][number ][of]decisions of this Court. [She ][further ][submits ][that ][impugned ][possession]notice is barred under Section [31fl) ][of ][the ][SARJAESI ][Acl]

5. On the other hand, [learned counsel ][for ][respondents ][No'2 ][ald ][3]submits that iflterest on [the principal arrloullt ][was ][enhanced ][as ][per ][the]of the [Resen'e ][Bank ][of ][lndia. ][C<x.rsidering ][the ][enhanced]guidelines amount, the repavment is to [be ][made'in ][133 ][instalments ][and]nor 120 instalments, [rvhich ][have ][becn ][pud ][bv the ][pctrtioncrs']6. Learned counsel for [the petitioners submits ][that ][for ][deficiency ][of]service of respondents No.2 [and ][3, ][she has ][already approached ][the]District Coosumer Forum [under the Consumer ][Protection ][Act.]7. Be that as it may, after hearing [learned counsel ][for ][the ][parties ][and]on due consideration, we [are ]of [the ][view that ][grievance ][of ][the ][petitioners]is basically against the action [taken ][by ][respondents ][No.2 ][and ][3 ][under]sub-section (4) of Section [13 ][of ][the ][SARFAESI ][Act. ][If ][that ][be ][the]position, under Section 17 of the [SARI'AfiSI ][Act, petitioners ][have ][got ][an]adequate and efficacious [remedv ]of [filir-rg ][Securitisation ][Application]before the [jurisdicrional ]Debts Rccovery [Tribunal.]

( 3. In view of above, we relegate the petitionen to the forum'ofjurisdictional Debts Recovery Tribunal under Section 17 of theSARFAESI Act. If such an application is filed within a period of thirrydap from today, the same may be taken on record and considered on itsown ment.SARFAESI Act. If such an application is filed within a period of thirrydap from today, the same may be taken on record and considered on itsown ment.

9Needless to say that the impugned possession notice would besubject to the outcome of such Securitisation Application, which may befiled by the petitionen. If any funher steps are taken by respondentsNo.2 and 3 following the impugned possession notice, it would be opento the petitioners to challenge the same before the jurisdictional DebtsRecovery Tribunal or if the same is not functional, to approach thisCourt.filed by the petitionen. If any funher steps are taken by respondentsNo.2 and 3 following the impugned possession notice, it would be opento the petitioners to challenge the same before the jurisdictional DebtsRecovery Tribunal or if the same is not functional, to approach thisCourt.

10. \7rit Petition is, accordingly, disposed of. Related interimapplication is also disposed of.

11. No costs.

SD/.K.ONESIMASSISTANT REGISTRARl\ ,,'-l\ ,,'-SECTION OFFICER

//TRUE COPY//

To,

1. The Union of lndia, Department of Financial Services [Vjinistry of Finance. 3rdFloor, Jeevan Deep Building, Sansad Marg, New Delhi-1100'01.Floor, Jeevan Deep Building, Sansad Marg, New Delhi-1100'01.2. The Authorised officer, tv1/s. cholamandalam Investment and Finance co. Ltd.,Regd. Office Dara House, First Floor, No.2, NSC Bose Road, Chennai_600001.Regd. Office Dara House, First Floor, No.2, NSC Bose Road, Chennai_600001.3. The Authorized Rep by lvlr.[r/.Laxman, S/o.l\/.Veeraiah, Aged about 38 years,R/o. Hyde-rabad.rr//s. choramandalam lnvestment and Fin-ance co. Ltd.; And itsbranch office at H. No.7-1-5912. 5916 102 1 St floor, l\,4andana tower, Ameerplt,'Hydera bad-50001 6. One CC to SRt. D [pADI\,4AVATHt ]Advocate tOpUCI R/o. Hyde-rabad.rr//s. choramandalam lnvestment and Fin-ance co. Ltd.; And itsbranch office at H. No.7-1-5912. 5916 102 1 St floor, l\,4andana tower, Ameerplt,'Hydera bad-50001 6. One CC to SRt. D [pADI\,4AVATHt ]Advocate tOpUCI 4. One CC to SRl. NAN/AVARAPU RAJESHWAR RAO(ASSGI) Advocate tOpUCl5. One CC to SRI V. SANTOSH (tv/s. CHOLAMANDALAM TNVESTEMENT ANDFINANCE Co. Ltd.) Advocate IOPUC]5. One CC to SRI V. SANTOSH (tv/s. CHOLAMANDALAM TNVESTEMENT ANDFINANCE Co. Ltd.) Advocate IOPUC]6. Two CD Copies.

7. One spare copy.

NPJ 4/

I

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HIGH COURT

DATED:3011212021

ORDERWP.No.32077 of [2021]

DISPOSING OF THE WRIT [PETITION]

WITHOUT COSTS.

'i t':c <, i,{alIoL]31 Jq! 2--!

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