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2017 Supreme(Guj) 644

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
C.L. Soni, J.
Sagar Innovative Private Limited – Appellant
Vs.
Punjab National Bank and Ors. – Respondents
Special Civil Application Nos. 10353, 11437 of 2014, 15599 of 2016 and Civil Application No. 3340 of 2017 in Special Civil Application No. 15599 of 2016
Decided On : 23-03-2017

Advocates Appeared:
For the Appellant :Ashok L. Shah, Advocate
For the Respondent:Nalini S. Lodha and A.S. Panesar, Advocates

Headnote:Constitution of India, 1950 - Art. 226 - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) - Secs. 13, 2(f), 17 & 5(2) - This petition is filed seeking remedy in a case of pecuniary nature - as per facts of the case question arises whether guarantor can be said to be a borrower also - court while rejecting this petition held that guarantor is included in borrower's category therefore can be sued by secured creditor for the recovery of his security interest under sec. 13 - further, guarantor has statutory remedy of appeal under sec. 17.

JUDGMENT :

C.L. Soni, J.

1. All these matters are filed under Articles 226 and 227 of the Constitution of India being aggrieved by the action taken under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('the Act'). Though in all these matters, the parties are different, however since one of the common issues raised is that the guarantor cannot be termed as borrower for the purpose of taking action under Section 13 of the Act, all these petitions are heard and decided together. One additional issue raised in Special Civil Application No. 11437 of 2014 is that the respondent No. 1, which is a securitisation and reconstruction company, has no jurisdiction to take measures under Section 13(4) of the Act to recover Rs. 10 crore independently lent to the petitioners and not part of the financial assets.

2. In Special Civil Application No. 10353 of 2014, following prayers are made in para 26:-

"(a) This Hon'ble may be pleased to issue a writ of certiorari or any other writ, direction or order in the nature of certiorari declaring that provisions of Section 13(2) and 13(4) do not apply to the petitioner and therefore, the notice dated 13.01.2014 issued by the second Respondent purportedly under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the taking over of symbolic possession of the properties of the petitioner by the Respondent No. 2 is illegal, null and void and without any authority of law.

(b) That the advertisement dated 03.05.2014 published by the Respondent No. 2 in Free Press Journal, Mumbai dated 9.5.2014 be declared to be illegal, null and void and is without authority of law.

(c) That pending the admission, hearing and final disposal of this Petition the Respondent, their servants and agents be restrained by an order of this Hon'ble Court from in any manner dealing with the properties of the Petitioner at Survey No. 119/120/123 Moje Navagam, Taluka Ankleshwar, Dist. Bharuch.

(d) That pending the admission, hearing and final disposal of this Petition, the Respondents, their servants and agents be restrained by an order of this Hon'ble Court in any manner proceeding further in furtherance of the newspaper advertisement dated 03.05.2014 published by the Second Respondent in "Free Press Journal", Mumbai.

(e) That pending the admission, hearing and final disposal of this Petition, the respondents be directed to handover back to the petitioner possession of their properties at Survey No. 119/120/123 Moje Navagam, Taluka Ankleshwar, Dist. Bharuch.

(f) ......

(g) ......"

3. In Special Civil Application No. 11437 of 2014, following prayers are made in para 48:-

"(a) This Hon'ble Court may be pleased to issue a writ of certiorari or any other writ, direction or order in the nature of certiorari declaring that in view of the facts and circumstances of the case provisions of Sections 13(2) and 13(4) do not apply to the Petitioner and therefore, the notice dated 18.11.2013 issued by the second Respondent purportedly under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is illegal, null and void and without any authority of law.

(b) That this Hon'ble Court may be pleased to declare that the order of learned District Magistrate dated 21.7.2014 rejecting the application of the Petitioner for copies of the Application No. E.C./M.A.G./Secu/Vasi 2713 of 2014 and documents produced therewith and for granting title to the Petitioners to file their reply is illegal, null and void and against the principles of natural justice.

(c) That this Hon'ble Court be pleased to declare that the order of the learned District Magistrate, Vadodara, on Application No. E.C./M.A.G./Secu/Vasi 2713 of 2014 is illegal, null and void and is without jurisdiction and be further pleased to quash and set aside the same.

(d) That pending the admission, hearin























































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