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2012 DIGILAW 316 (CAL)

East India Chemical Products v. State Bank of India

2012-04-17

JOYMALYA BAGCHI

body2012
Judgment Joymalya Bagchi, J. 1. STATE Bank of India, Ektissal Branch (hereinafter referred to as the bank) sanctioned credit facilities to one of the concerns of the petitioner, namely, East India Chemical Products, in the following manner : (i) Cash credit to the tune of 3 lakhs; (ii) Clean medium loan to the tune of 1 lakh 95 thousand and; (iii) Medium term loan for RS. 95,000/- against STDR of Rs.1,000,00/- as collateral security and by creating equitable mortgage in respect of 30 Cottahs of land at Dabgram in the district of Jalpaiguri. 2. OTHER credit facilities were also sanctioned by the bank to another concern of the petitioner, namely East India Trading Company and a personal vehicle loan was also advanced to the petitioner. The petitioner has filed the instant writ petition, inter alia challenging the notice of sale issued by the bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as the SARFAESI Act) being Annexure Petitioner-8 to the writ petition, and with a further prayer for release of excess land which has been wrongfully possessed by the bank. 3. THE contention of the petitioner is that no notice under Section 13 (2) of the SARFAESI Act was served upon him and that the respondents have taken possession of 21 bighas of land instead of 1 bighas or 30 cottahs of land which was mortgaged to the bank. THE petitioner strenuously argued that he has repaid the loan of the bank and the debt payable to the bank had not become a non-performing asset, various provisions, like Section 15, of the SARFESI Act, were violated when the secured asset was wrongfully possessed and the bank could not have proceeded to sale the secured asset after having instituted a Title (Mortgage) Suit No. 33 of 2004 before the Civil Court with regard to the self-same asset. 4. THE respondent resisted the contentions of the petitioner and contested the matter by filing affidavit. With leave of this Court, another supplementary affidavit was also filed by the respondents. THE respondents argued that the writ petition was not maintainable on the ground of existence of alternative statutory remedy under SARFSI Act. THE respondents also disputed the factual claims of the petitioner. With leave of this Court, another supplementary affidavit was also filed by the respondents. THE respondents argued that the writ petition was not maintainable on the ground of existence of alternative statutory remedy under SARFSI Act. THE respondents also disputed the factual claims of the petitioner. At the time of admission of this writ petition, this Court by order dated 28.09.2007 had kept the point of maintainability of the writ petition open. 5. THE Apex Court in the case reported in 2010 (8) SCC 110 (United Bank of India Vs. Satyawati Tandon and Others) has unequivocally held that the High Court shall be extremely slow in exercising its extraordinary powers under Article 226 of the Constitution of India in the face of the alternate statutory remedy under section 17 of the SARFESI Act. THE ratio of the aforesaid decision applies with full force to the instant case and hence I am unwilling to exercise my discretionary powers under Article 226 of the Constitution of India. 6. IT is pertinent to mention that the petitioner had similarly challenged in W.P. No. 3624 (W) of 2007 a sale notice issued by the bank under the provision of SARFESI Act against another concern of the petitioner. This Hon’ble Court by order dated 04.07.2008 dismissed that writ petition on the ground of existence of alternative remedy. Such order was affirmed by the Division Bench by order dated 15.09.2008 in M.A.T. No. 736 of 2008. I find no reason to arrive at a different conclusion in the instant case wherein facts are similar. That apart, the issues raised by the parties involve disputed questions of fact which cannot be decided in this proceeding by mere exchange of affidavits and can be more effectively dealt with under the statutory remedy under Section 17 of the SARFESI Act. 7. FOR the aforesaid reasons, I hold that the writ petition is not maintainable on the ground of existence of alternative statutory remedy and I dismiss the same. This order will not prevent the petitioner from seeking remedy before the appropriate forum in accordance with law, if so advised. Urgent certified Photostat copy of this order be given to the parties, if applied for, subject to compliance with all necessary formalities.