Important points:
The High Court overlooked the settled law that the High Court will ordinarily not entertain a petition under Article 226 of the Constitution if an effective remedy is available to the aggrieved person and that this rule applies with greater rigour in matters involving recovery of taxes, cess, fees, other types of public money and the dues of banks and other financial institutions-While dealing with the petitions involving challenge to the action taken for recovery of the public dues, etc. the High Court must keep in mind that the legislations enacted by Parliament and State Legislatures for recovery of such dues are a code unto themselves inasmuch as they not only contain comprehensive procedure for recovery of the dues but also envisage constitution of quasi-judicial bodies for redressal of the grievance of any aggrieved person.

JUDGMENT :

S.Manikumar, J.

Challenge in this writ appeal is to the correctness of judgment in W.P.(C) No.4858 of 2020 dated 20.02.2020, by which the writ court declined to quash Exts.P3 to P5 and the proceedings issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Exts.P3, P4 and P5 notices are extracted hereunder:

Ordinary/Registered AD

To

• (Borrower) • (Guarantor)

Sri.Anil Kumar N.V.

Nambadiazhikathu Veedu

Pidavorr P.O.,

Pathanapuram – 691625

Kollam

Phn: 9847831966

Dear Sir,

Borrower/Unit's Name Mr.Anil Kumar N.V.

Loan Account No(s) 67351721888

Purpose Contractor

Limit Rs.40,00,000/-

Outstanding(s) Rs.40,90,530/-

INTIMATION OF ACTION PROPOSED UNDER SARFAESI ACT 2002/REVENUE RECOVERY

At your request, you No.1 above had been granted credit facility/ies by way of financial assistance to the tune of Rs.40,00,000/-on 03/02/2016 as facility/working capital facility/Term Loan facility for the purpose of running business (business/purchase of machinery/working capital/Housing Loan/Mortgage Loan etc.) against which the documents had been executed by you. No.2 of you as guarantor had guaranteed the credit facility granted to the No.1 of you above.

(2) You have availed the financial assistance with an undertaking for dues repayment of the said financial assistance along with interest, in terms of the said agreement(s)/document(s).

(3) For the purposes of securing the facilities you No.1/No.2 have also created mortgage by way of deposit of title deeds/Registered mortgages creating security interest in favor of the Bank in respect of the following property(ies) mentioned below:

(4) Though you had undertaken to repay the said financial assistance in terms of the documents executed by you, you had failed to make payments as agreed by you. On the contrary, the operation and the conduct of the above said financial assistance had become irregular and you are liable to pay an amount of Rs.40,90,530/-to regularize the account(s).

(5) You are hereby called upon to regularize the account(s) on or before 15.08.2019. If you fall to regularize the account, the bank will initiate action U/s 13(2) of the SARFAESI ACT/REVENEU RECOVERY, and also initiate all or any of the rights detailed under sub-Section (4) of Section 13 of the SARFAESI ACT/REVENEU RECOVERY and under other applicable provisions of SARFAESI ACT/REVENEU RECOVERY.

Yours faithfully,

For State Bank of India

Sd/-

CHIEF MANAGER”

***************

“State Bank of India

RASMEC KOTTARAKARA

[Rule – 8(1)]

POSSESSION NOTICE

(for immovable property)

Whereas, the undersigned being the Authorised Officer of the State Bank of India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and in exercise of powers conferred under section 13(12) read with Rule 3 of the Security Interest (Enforcement) Rules 2002, issued a Demand Notice dated 03.08.2019 calling upon the borrower Sri.Anilkumar N.V. (S/o Venugopalan), residing at Nambadiazhikathu Veedu, Pidavoor PO, Pathanapuram, Kollam District, PIN 689695 to repay the amount mentioned in the notice being Rs.41,71,585/-and interest from 03.08.2019, (Rupees forty one lakhs seventy one thousand five hundred and eighty five only) within 60 days from the date of receipt of the said notice.

The borrower having failed to repay the amount, notice is hereby given to the Borrower/Guarantor and the public in general that the undersigned has taken possession of the property described herein below in exercise of powers conferred on him under Section 13(4) of the said Act read with Rule 8 of the said rules on this 06th November, 2019.

The Borrower/Guarantor in particular and the public in general are hereby cautioned no