IMPORTANT POINT
The court established that allegations of fraud against bank officials can affect the enforcement of the SARFAESI Act, particularly regarding possession and mortgage validity.

JUDGMENT :

1. This intra-Court appeal by the writ petitioner is directed against the order dated 28th March, 2024 in W.P.A. 6966 of 2024. In the said writ petition the respondent bank viz. the Canara Bank sought for a direction upon the District Magistrate, North 24 Parganas to consider their application filed under Section 14 of the SARFAESI Act. The learned writ court by the impugned order directed the District Magistrate, North 24 Parganas to dispose of the application filed by the bank under Section 14 of the SARFAESI Act within the time frame and to pass consequential orders to ensure implementation of any order which might have already been passed by the District Magistrate, North 24 Parganas under Section 14(1) of the said Act.

2. Aggrieved by such order, the appellant had preferred this appeal.

3. On the last occasion, the matter was heard at length and an order was passed on 29.04.2024 and for the purpose of disposal of this appeal, it would be relevant to take note of the said order and, therefore, the same is quoted hereinbelow:

1. This intra-Court appeal by the private respondent in W.P.A. 6966 of 2024 is directed against the order dated 28th March, 2024 by which the writ petition filed by the Canara Bank was allowed with a positive direction to the District Magistrate, North 24 Parganas to dispose of the application under Section 14 of the SARFAESI Act filed by the bank as expeditiously as possible but positively within four weeks from date and to pass consequential orders to ensure implementation of any order, which might have already been passed by the District Magistrate under Section 14(1) of the Act.

2. The learned advocate appearing for the appellant had made a mention before this Court seeking leave to file this appeal and expressing extreme urgency as the appellant is likely to be dispossessed from his residential premises.

3. Leave was granted by this Court to file Memo of Appeal without certified copy on 23rd April, 2024, which leave was availed by the respondent and the Memo of Appeal was filed. Thereafter, a mention was made on 25th April, 2024 requesting the Court to take up the matter urgently. As the appellant is facing severe threat of dispossession from residential premises, the Court directed the matter to be listed today (29th April, 2024).

4. The learned advocate for the appellant submitted that instead of informing the appellant, it appears that the respondent/bank has proceeded further and thrown out the movable articles of the appellant in the street and dispossessed the appellant.

5. The learned advocate for the respondent/bank submitted that the property has alrea dy been sold.

6. It is rather surprising that the respondent/bank has acted in such a hurried manner in spite of the bank having been put on notice that the Court will hear this appeal today. One more aspect, which has prima facie convinced to entertain this appeal is the involvement of the bank officials in a well-planned fraud and in this connection, a charge-sheet has been laid by the C.B.I. before the Special Judge (C.B.I. Court No.3), Bankshall Court, Kolkata. In the said case, all the bank officials have been arrayed as accused and the appellant is also one of the accused i.e. A-15. The consistent case of the appellant is that no loan was availed by the appellant, either the property loan or the vehicle loan and it is a well-planned fraud committed by the bank officials and the appellant has been made a scapegoat.

7. Considering all these factors, we are of the view that this is a peculiar case, which has convinced us to entertain this appeal and hear the parties so that the appeal can be disposed of.

8. Considering the peculiar facts and circumstances, as narrated above and also the complicity of the bank officials, this Court is of the view that the appellant should be restored possession and this will be subject to whatever action as already taken by the respondent/bank and subject to the outcome of this appeal, the appellant shall