Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2016 Supreme(SC) 1419

SUPREME COURT OF INDIA
Ranjan Gogoi, Arun Mishra, Prafulla C. Pant, JJ.
Pandurang Ganpati Chaugule - Appellant
Versus
Vishwasrao Patil Murgud Sahakari Bank Ltd. - Respondent
Civil Appeal No. 5674 of 2009 with SLP(C) No. 7694 of 2015, W.P.(C) No. 131 of 2015, SLP(C) No. 29859 of 2010, C.A. No. 5675 of 2009, C.A. No. 5681 of 2009, C.A. No. 5682 of 2009, C.A. No. 5684 of 2009, SLP(C) No. 25930 of 2009, W.P.(C) No. 318 of 2010, C.A. No. 4391 of 2010, C.A. No. 7410 of 2010, SLP(C) No. 24309 of 2010, W.P.(C) No. 41 of 2011, W.P.(C) No. 220 of 2011, W.P.(C) No. 293 of 2011, W.P.(C) No. 306 of 2011, W.P.(C) No. 338 of 2011, W.P.(C) No. 375 of 2011, SLP(C) No. 7295-7298 of 2011, SLP(C) No. 22304-22305 of 2011, SLP(C) No. 24479-24480 of 2011, W.P.(C) No. 122 of 2012, W.P.(C) No. 199 of 2012, W.P.(C) No. 250 of 2012, W.P.(C) No. 291 of 2012, W.P.(C) No. 386 of 2012, W.P.(C) No. 487 of 2012, W.P.(C) No. 537 of 2012, W.P.(C) No. 554 of 2012, SLP(C) No. 24276 of 2012, W.P.(C) No. 36 of 2013, W.P.(C) No. 111 of 2013, W.P.(C) No. 112 of 2013, W.P.(C) No. 138 of 2013, W.P.(C) No. 146 of 2013, W.P.(C) No. 151 of 2013, W.P.(C) No. 175 of 2013, W.P.(C) No. 179 of 2013, W.P.(C) No. 181 of 2013, W.P.(C) No. 191 of 2013, W.P.(C) No. 192 of 2013, W.P.(C) No. 201 of 2013, W.P.(C) No. 233 of 2013, W.P.(C) No. 236 of 2013, W.P.(C) No. 238 of 2013, W.P.(C) No. 248 of 2013, W.P.(C) No. 250 of 2013, W.P.(C) No. 253 of 2013, W.P.(C) No. 264 of 2013, W.P.(C) No. 265 of 2013, W.P.(C) No. 266 of 2013, W.P.(C) No. 270 of 2013, W.P.(C) No. 271 of 2013, W.P.(C) No. 279 of 2013, W.P.(C) No. 280 of 2013, W.P.(C) No. 284 of 2013, W.P.(C) No. 353 of 2013, W.P.(C) No. 452 of 2013, W.P.(C) No. 469 of 2013, W.P.(C) No. 588 of 2013, W.P.(C) No. 753 of 2013, W.P.(C) No. 758 of 2013, W.P.(C) No. 761 of 2013, W.P.(C) No. 762 of 2013, W.P.(C) No. 800 of 2013, W.P.(C) No. 819 of 2013, W.P.(C) No. 877 of 2013, W.P.(C) No. 922 of 2013, W.P.(C) No. 1007 of 2013 W.P.(C) No. 1037 of 2013, W.P.(C) No. 1043 of 2013, W.P.(C) No. 1044 of 2013, W.P.(C) No. 1045 of 2013, SLP(C) No. 12916 of 2013, SLP(C) No. 15634-15635 of 2013, SLP(C) No. 17054 of 2013, SLP(C) No. 18775 of 2013, SLP(C) No. 18777 of 2013, SLP(C) No. 29720 of 2013, SLP(C) No. 29721 of 2013 SLP(C) No. 35137 of 2013, W.P.(C) No. 5 of 2014, W.P.(C) No. 10 of 2014, W.P.(C) No. 40 of 2014, W.P.(C) No. 142 of 2014, W.P.(C) No. 168 of 2014, W.P.(C) No. 169 of 2014, W.P.(C) No. 352 of 2014, W.P.(C) No. 408 of 2014, W.P.(C) No. 420 of 2014, W.P.(C) No. 421 of 2014, W.P.(C) No. 492 of 2014, W.P.(C) No. 712 of 2014, W.P.(C) No. 714 of 2014, W.P.(C) No. 754 of 2014, W.P.(C) No. 795 of 2014, W.P.(C) No. 827 of 2014, W.P.(C) No. 838 of 2014, W.P.(C) No. 1020 of 2014, S.L.P.(C)...CC No. 7586 of 2014, SLP(C) No. 32589 of 2014, W.P.(C) No. 26 of 2015, W.P.(C) No. 79 of 2015, W.P.(C) No. 86 of 2015, W.P.(C) No. 264 of 2015, W.P.(C) No. 186 of 2015, SLP(C) No. 17935 of 2015, SLP(C) No. 27645 of 2015, W.P.(C) No. 733 of 2015, SLP(C) No. 28892 of 2015, W.P.(C) No. 868 of 2015, W.P.(C) No. 858 of 2015
Decided On : 26-02-2016

Advocates Appeared:
Devansh A. Mohta, Shishir Deshpande, Amit Yadav, Sujata Kurdukar, Arun Aggarwal, Taranjeet Singh, Advocates Gaurav Agrawal, AOR P.S. Narasimha, ASG Yashank Adhyari, Sr. Advocate, Kiran Bhardwaj, Sunita Sharma, B.K. Prasad, Sushma Suri, Advocates Subramonium Prasad, Sr. Advocate, Abhay Kumar, AOR Ashmeet Singh, Advocate Yadav Narender Singh, AOR Chirag M. Shroff, AOR Nikhil Nayyar, AOR Akash Kakade, Satyajit Desai, Advocates Anagha S. Desai, AOR Chandan Ramamurthi, AOR Vanshaja Shukla, AOR R.N. Dhorde, Sr. Advocate M.Y. Deshmukh, Onkar Nath, Saurabh Tuteja, Advocates Rameshwar Prasad Goyal, AOR Renjith B. AOR Arvind Kumar, Purti, Chinban Chouhan, Ganesh D. Gurnule, Advocates A. Venayagam Balan, AOR Pradhuman Gohil, Taruna Singh Gohil, Himanshu Charubey, Advocates Charu Mathur, AOR Satpal Singh, AOR Vijay Kumar, AOR S. Sadasiva Reddy, Mathews J. Nedumpara, A.C. Philip, Anjan Sinha, Advocates S. Usha Reddy, AOR Pooja Sharma, A.V. Manavalam, Advocates H. Chandra Sekhar, AOR Nikhil Goel, AOR Naveen Goel, Marsook Bafaki, Advocates Bankey Bihari Sharma, AOR Lakshmi Raman Singh, AOR Vikas Mehta, AOR Sujata Kurdukar, AOR Sarad Kumar Singhania, AOR Harish Pandey, AOR N. Ganpathy, AOR Amar Dave, P.S. Sudheer, AOR Rishi Maheshwari, Shruti Jose, R.N. Singh, Rajiv Kumar, Advocates Kusum Chaudhary, AOR Amol Chitale, Advocates Pragya Baghel, AOR Samten Doma, M. Khairati, Advocates Irshad Ahmad, AOR M.J. Paul, AOR Garvesh Kabra, AOR Anirudh Sanganeria, Advocate Mukul Kumar, AOR S.K. Kulkarni, M. Gireesh Kumar, Shubham Jaiswal, Advocates Ankur S. Kulkarni, AOR E.C. Agrawala, AOR Vikrant Pachnanda, Devika Mohan, Mahesh Agrawala, P.B. Suresh, Udayaditya Banerjee, Advocates for Temple Law Firm, AOR Gaurav Goel, Advocate Garima Prashad, AOR Shishir Deshpande, AOR Rakhi Ray, AOR Atul Babasaheb Dakh, AOR Santosh Krishnan, AOR Vineet Bhagat, AOR R. Shrivastav, Advocate K. Krishna Kumar, AOR Mathews J. Nedumpara, A.C. Philip, Anjan Sinha, Rabin Majumder, AOR B.B. Sawhney, Sr. Advocate, Yashank Adhyaru, Sr. Advocate, T.R. Razdan, Sadhna Sandhu, Aditiya Shandiliya, R.K. Verma, Sushma Suri, AOR Anup Jain, AOR Ahishek Baid, Amol Nirmalkumar Suryawanshi, AOR Mathews J. Nedumpara, A.C. Philip, Anjan Sinha, E.R. Sumathy, AOR Vinay Navare, Abha R. Sharma, AOR Debmalya Banerjee, Jasmeet Singh, A.S. Aman, Manish Sharma, Manik Karanjawala, Advocates for Karanjawala & Co., AOR Aniruddha P. Mayee, AOR S.S. Panesar, Selvin Raja, Advocates Jaideep Gupta, Sr. Advocate, Kuldeep S. Parihar, Advocate H.S. Parihar, AOR Uday B. Dube, AOR Vibha Datta Makhija, Sr. Advocate, Rashmi Singhania, Praveen Chaturvedi, AOR Pratap Venugopal, Surekha Raman, Purushottam Kumar Jha, Niharika and Anuj Sarma, Advocates for M/s. K.J. John & Co., AOR M.T. George, AOR Shreekant N. Terdal, AOR Praveena Gautam, AOR Deepak Tyagi, Pusshp Gupta, Advocates Shivaji M. Jadhav, AOR Rajani K. Prasad, Advocate N. Annapoorani, AOR Anil Kumar Mishra, AOR D.M. Nargolkar, AOR Piyush Sharma, AOR D. Bharat Kumar, Advocate Abhijit Sengupta, AOR B. Subrahmanya Prasad, AOR Arjun Krishnan, AOR Ankur Singh, Suresh Datt Dobhal, Advocates Ankur Prakash, AOR V.N. Raghupathy, AOR Siddhesh Kotwal, Raghunatha Sethupathy, Advocates Nirnimesh Dube, AOR Pravin Satale, Advocate Rajiv Shankar Dvivedi, AOR Hemantika Wahi, AOR Jesal Wahi, Advocate S.N. Bhat, AOR Rajeev K. Panday, Advocate Rajeev Maheshwaranand Roy, AOR Anuradha Mutatkar, AOR S.M. Jadhav and Darpan Bhuyan, Advocates for M/s. S.M. Jadhav & Company, AOR J.P. Cama, Sr. Adv., Krishan Kumar, AOR M. Prasad, Rajesh Mahale, AOR Arun Aggarwal, AOR P.I. Jose, AOR Dr. Lalit Bhasin, Nina Gupta, Mudit Sharma, Parvez A. Khan, Palak Chadha, Advocates P.V. Yogeswaran, AOR Gaurav Nair, Varun Singh, Abhisth Kumar, Shamik Sanjanwala, Kailash Pandey, Ranjeet Singh, K.V. Sreekumar, Manish Pitale, Deeplaxmi S. Matwankar, C.S. Ashri, S. Wasim A. Qadri, Jubair Ahmad Khan, Zaid Ali, Tamim Qadri, Saurabh Chopra, L.R. Singh, Renjith B. Marar, Lakshmi N. Kaimal, Anas Muhammed Shamnad R., Anu Dixit Kaushik, Pankaj Kumar Singh, Manindra Dubey, Satpal Singh, Neha Sharma, Deeptakirti Verma, AOR Jyotika Kalra, Gaurav Sharma, Prateek Bhatia, D. Mohan, Vara Gaur, Advocates Asha Gopalan Nair, AOR Sonal Jain, AOR Anil Kumar Sangal, AOR.

Conflicting decisions on the applicability of the SARFASI Act to Cooperative Societies/Banks and the scope of legislative fields covered by specific entries in the Seventh Schedule require reference to a larger Bench for resolution.

Headnote:
Legislative Fields - Applicability of SARFASI Act to Cooperative Societies/Banks - The court directed the matters to be referred to a larger Bench due to conflicting decisions on the scope of legislative fields covered by Entry 45 of List I and Entry 32 of List II of the Seventh Schedule, specifically regarding the applicability of the SARFASI Act to Cooperative Societies/Banks.
Fact of the Case:

The court considered conflicting decisions in previous cases and directed the matters to be referred to a larger Bench due to the scope of legislative fields covered by specific entries in the Seventh Schedule.
Finding of the Court:

The court found that the conflicting decisions on the applicability of the SARFASI Act to Cooperative Societies/Banks required reference to a larger Bench for resolution.
Issues: Conflicting decisions on the applicability of the SARFASI Act to Cooperative Societies/Banks and the scope of legislative fields covered by specific entries in the Seventh Schedule.
Ratio Decidendi: The conflicting decisions of coordinate Benches on the scope of legislative fields required reference to a larger Bench for resolution.
Final Decision: The court directed the matters to be referred to a larger Bench for resolution due to conflicting decisions on the applicability of the SARFASI Act to Cooperative Societies/Banks.

ORDER :

We have read and considered the order dated 30th July, 2015 referring the matters to a larger Bench in view of conflicting decisions in Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd. and others [(2007) 6 SCC 236] and the earlier pronouncements of this Court in Delhi Cloth & General Mills Co. Ltd. v. Union of India [(1983) 4 SCC 1666], T. Velayudhan v. Union of India [(1993) 2 SCC 582] and Union of India v. Delhi High Court Bar Association [(2002) 4 SCC 275].

2. The basis on which the decisions, referred to above, have been reached by the respective Benches relate to the scope of the legislative fields covered by Entry 45 of List I and Entry 32 of List II of the Seventh Schedule which question undoubtedly touches upon the issue in hand, namely, the applicability of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFASI Act) to Cooperative Societies/Banks. As the decisions in conflict are of coordinate Benches (three judges' Bench) the reference, in our considered view, ought to have been made to a larger Bench. We, therefore, direct the Registry to place the papers before the Hon'ble the Chief Justice of India for being referred to a larger Bench.

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2016 Supreme(SC) 1419

Conflicting decisions on the applicability of the SARFASI Act to Cooperative Societies/Banks and the scope of legislative fields covered by specific entries in the Seventh Schedule require reference to a larger Bench for resolution.

Cases Referred (4)