Sunderasan. N vs. Tamilnad Mercantile Bank LTD.
Held
The High Court directed that if the petitioner files a securitisation application under Section 17 of the SARFAESI Act with the Debts Recovery Tribunal by November 8, 2022, along with an interlocutory application concerning the sale, the Tribunal must consider and pass orders on it before the scheduled sale date of November 15, 2022.
Facts
A guarantor challenged the sale of his property by a bank under the SARFAESI Act, contending that the principal borrower had substantial business (evidenced by GST returns) and the bank was unfairly proceeding against his property while planning to restructure the principal loan. He sought intervention to prevent the sale scheduled for November 15, 2022.
Key Issues
The key issue was whether the High Court should intervene in SARFAESI proceedings to prevent the sale of a guarantor's property, especially when the principal borrower's financial health was disputed and the petitioner feared prejudice, or if the petitioner should be relegated to the Debts Recovery Tribunal.
Sections Cited
Section 17
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 4TH DAY OF NOVEMBER 2022 / 13TH KARTHIKA, 1944 WP(C) NO. 35379 OF 2022 PETITIONER: SUNDERASAN.N, AGED 73 YEARS, S/O NADARAJA NADAR, AYYANAR HOUSE, VAYASKARA KUNNU, PALACE ROAD, KOTTAYAM, PIN – 686 001. BY ADV R.RAJESH(PULLIKADA) RESPONDENTS: 1 TAMILNAD MERCANTILE BANK LTD., BANGALORE CITY BRANCH, REPRESENTED BY THE BRANCH MANAGER, 19-F, B.V.K IYENGAR ROAD, BANGALORE, PIN – 560 009. 2 THE AUTHORIZED OFFICER, BANGALORE REGION, TAMILNAD MERCANTILE BANK LTD., 19-F, B.V.K IYENGAR ROAD, BANGALORE, PIN – 560 009. 3 M/S RADHABAI ASSOCIATES, REPRESENTED BY ITS PARTNER, NO.3/8-1, MYLASANDRA VILLAGE, KENGERI HOBLI, BENGALURU – 560 059. 4 DEVASENAPATHI, S/O RAJAGOPALAN, 646, 4TH STAGE, BEML LAYOUT, R.R NAGAR, BENGALURU – 560 098. 5 KULABHUSHANPANDIYAN R, S/O RAJAGOPALAN, 646, 4TH STAGE, BEML LAYOUT, R.R.NAGAR, BENGALURU – 560 098. BY ADV G.LEKHA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 35379 OF 2022 2 JUDGMENT The petitioner has approached this Court being aggrieve
The judgment continues below.
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