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2019 Supreme(Pat) 1943

IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJAY KAROL, C.J. and ANIL KUMAR UPADHYAY, J.
(28.11.2019)
L.P.A. Nos. 1683, 1739 of 2018 In C.W.J.C. No. 17913 of 2016 and 13998 of 2017
Afroz Alam & Anr. : Appellants
(in both)
Vs.
State of Bihar & Ors. : Respondents
(in both)

Advocates:
For the Appellants : M/s Md. Waliur Rahman, Nishant Kumar Sinha, (in both).
For the Respondents: Mr. Md. Khurshid Alam, (in both).

Headnote:

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Sections 13(4) and 17 – Security Interest (Enforcement) Rule, 2002 – Constitution of India – Article 226 – Debt recovery – SARFAESI Act providing complete mode and mechanism for adjudication of disputes, scope of writ jurisdiction is limited in nature – Writ petitions ought to have been dismissed on ground of maintainability – Impugned order set aside. (Paras 6 and 7)

2018 (3) SCC 85 – Relied.

SANJAY KAROL, CJ.:–In LPA No. 1683 of 2018 the appellants through the instant appeal have prayed for the following relief:—

“For setting aside the order/judgment dated 10.10.2018 passed in C.W.J.C. Nos. 17913 of 2016 by Hon’ble Justice Smt. Nilu Agrawal, whereby the order dated 08.09.2016 passed in S.A. No. 28 of 2016 by the Debt Recover Tribunal, Bihar, Patna has set aside in a mechanical manner without appreciating the mandatory provision of Security Interest (Enforcement) Rule, 2002 and also the law laid down by the Apex Court.”

2. In LPA No. 1739 of 2018 the appellant through the instant appeal has prayed for the following relief:—

“For setting aside the order/judgment dated 10.10.2018 passed in C.W.J.C. Nos. 13998 of 2017 by Hon’ble Justice Smt. Nilu Agrawal, whereby the order dated 18.09.2016 passed in S.A. No. 28 of 2016 by the Debt Recover Tribunal, Bihar, Patna has set aside in a mechanical manner without appreciating the mandatory provision of Security Interest (Enforcement) Rule, 2002 and also the law laid down by the Apex Court.

3. As per office report dated 27.11.2019, the private respondents stand appeared.

4. It is seen that in the impugned judgment dated 10.10.2018 passed in C.W.J.C. No. 13998 of 2017 (Md. Afroz Alam vs. the State of Bihar & Ors.) and analogous cases, the learned Single Judge has entertained one of the writ petitions on merits, whereas the other writ petitions stand dismissed on the ground of maintainability.

5. In our considered view, both the writ petitions ought to have been dismissed on the ground of maintainability. More so, in view of the decision rendered by the Apex Court reported in 2018(3) SCC 85 (Authorized Officer, State Bank of Travancore & Anr. Vs. Mathew K.C.) holding the statute i.e. SARFAESI Act providing complete mode and mechanism for adjudication of the disputes and the scope of writ jurisdiction, limited in nature, specific to the statute in issue and as such both the appeals are allowed.

6. The impugned judgment dated 10.10.2018 is set aside, leaving it open for the parties to take appropriate action in accordance with law.

7. All issues on merit are left open. For the present the petitioners have been pursuing the remedies before this Court, limitation shall stand excluded.

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