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2025 Supreme(Ker) 2263

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, MURALEE KRISHNA S., JJ.
 
The Union Bank Of India - Appellant 
Versus 
Alice Ulahannan - Respondent 
WA No. 1571 of 2025
Decided on : 23-07-2025
 

Advocates:
Advocate Appeared:
For the Appellant : ADV SHRI.ASP.KURUP
For the Respondent: SRI.GEORGE POONTHOTTAM, SR.COUNSEL

The High Court cannot intervene under Article 226 when an alternative statutory remedy exists, particularly in debt recovery cases under SARFAESI Act.

Headnote:(A) SARFAESI Act, 2002 - Section 18 - Kerala High Court Act, 1958 - Jurisdiction and alternative remedies - Appeal filed under Section 5(i) challenging the Single Judge's order granting time to produce materials for the Tribunal's fresh consideration - The original petition was dismissed as the High Court found that the 1st respondent should pursue statutory remedies available under the SARFAESI Act rather than invoking constitutional jurisdiction. (Paras 1, 19)

(B) Jurisdiction - Writ jurisdiction under Article 226 - The High Court should not intervene when an alternative remedy exists, particularly in matters involving recovery of debts under the SARFAESI Act. (Paras 6, 9)

Facts of the case:
The 1st respondent, a mentally disabled person, contested the validity of property transactions executed without court permission, impacting her rights in the context of the SARFAESI Act. The appeal arose from the dismissal of her original petition against recovery proceedings initiated by the Bank.

Findings of Court:
The learned Single Judge failed to recognize the necessity for the 1st respondent to exhaust statutory remedies before seeking relief under Article 226.

Issues: The primary issue addressed was whether the 1st respondent could invoke the High Court's jurisdiction under Article 226 when an alternative statutory remedy was available.

Ratio Decidendi: The court ruled that the original petition was improperly filed to circumvent the requirement of depositing a portion of the debt before the Appellate Tribunal, emphasizing the importance of adhering to statutory provisions.

Result: Writ appeal allowed, and the original petition dismissed.

Table of Content
1. facts surrounding the property rights of a mentally disabled person. (Para 2)
2. arguments regarding jurisdiction and the need for statutory remedies. (Para 4 , 5)
3. court observations on the jurisdiction of the high court in debt recovery matters. (Para 6 , 7 , 8 , 9 , 11 , 13 , 15 , 16 , 17)
4. conclusion and outcome of the appeal. (Para 18)
5. the court's final reasoning regarding the dismissal of the original petition. (Para 19)

JUDGMENT :

Muralee Krishna, J.

This intra-court appeal is filed under Section 5 (i) of the Kerala High Court Act, 1958, by respondents 2 and 3 in O.P. (DRT) No.180 of 2025 challenging the judgment dated 26.06.2025, whereby the original petition filed by the 1st respondent herein/petitioner was disposed of by the learned Single Judge with the following directions:

“3. After hearing both sides, I am inclined to grant three weeks to produce such materials on behalf of the petitioner so as to enable the Tribunal to consider the stay petition afresh, in particular the contention noticed above, based on which the Tribunal will take a fresh decision, in accordance with law, within three weeks thereafter. Till orders are passed as directed above, the coercive steps against the petitioner will stand deferred.”

2. The 1st respondent-petitioner filed the original petition through her next friend, stating that the 1st respondent has been mentally disabled since birth. According to the 1st respondent, her father died intestate. By Annexure A3 partition deed bearing No.2932 of 1988 of S.R.O. Puthencruz dated 19.08.1988, the immovable properties belonging to the father of the 1st respondent were partitioned between his three children, including the 1st respondent. But, the signatories to Annexure A3 partition deed are the 1st respondent’s brothers and her mother. The mother of the 1st respondent signed that document on behalf of the 1st respondent as her guardian. As per Annexure A3 partition deed, the ‘A’ schedule property having an extent of 20.24 Ares in different survey numbers was allotted to the share of the 1st respondent’s brother Pappachan, wherein life interest was reserved to the 1st respondent, permitting her to reside in the house situated therein during her lifetime. The ‘B’ schedule property in the partition deed was allotted to the 1st respondent’s another brother John. The ‘C’ schedule property having an extent of 20.24 Ares in different survey numbers, was allotted to the share of the 1st respondent. Though the mother of the 1st respondent signed in Annexure A3 partition deed on behalf of the 1st respondent, she has not obtained permission from the Court of law to effect the transfer of immovable properties of the 1st respondent. Later, the brother of the 1st respondent, namely Pappachan and mother Sara, executed Annexure A4 Power of Attorney dated 21.02.1988 in favour of Chinamma, authorising the Power of Attorney holder to sell the ‘A’ schedule property to one Basil N. Paul, the 3rd respondent herein. On the strength of Annexure A4 Power of Attorney, Chinamma executed Annexure A5 sale deed No. 820/1998 of SRO, Puthencruz dated 24.02.1998 in favour of the 3rd respondent, parting the ‘A’ schedule property in Annexure A3 partition deed, including the life interest of the 1st respondent. Subsequently, some other conveyances were also effected in respect of the property, and finally, the entire ‘A’ schedule property in Annexure A3 partition deed was re-conveyed in the name of the 3rd respondent. It was later understood that the ‘C’ Schedule property in Annexure A3 partition deed, which was allotted to the share of the 1st respondent was also parted with by her relatives without obtaining the permission of the Court. Annexure A3 partition deed itself is a void document since it was executed without obtaining necessary permission from the authority concerned appointed under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities

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