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THE MADURAI BENCH OF MADRAS HIGH COURT
S.MANIKUMAR and C.T.SELVAM, JJ.
Mr. A.Rajakafur - Petitioner
Vs.
The District Magistrate & Collector, Virudhunagar District, Virudhunagar – Respondent
Writ Petition(MD)No.20892 of 2015 and M.P(MD)No.1 of 2015
Decided on : 01.02.2016
SARFAESI Act - Writ of Mandamus - Section 14, Section 17, Section 18 - The court discussed the provisions of the SARFAESI Act, including Section 14, Section 17, and Section 18, and their application in the case. The interpretation of these sections influenced the court's decision regarding the borrower's appeal and the actions of the Tahsildar and the Debts Recovery Appellate Tribunal.
Fact of the Case:
The borrower sought a Writ of Mandamus to prevent the Tahsildar from executing an order under Section 14 of the SARFAESI Act, pending the disposal of an appeal filed under Section 18 of the Act. The court considered the borrower's appeals, the actions of the Debts Recovery Appellate Tribunal, and the borrower's forum shopping.
Finding of the Court:
The court found that the borrower had not pursued the appeal and interim relief diligently, and had engaged in forum shopping. As a result, the court dismissed the writ petition and closed the related motion.
Issues: The issues involved the borrower's attempts to prevent the execution of an order under Section 14 of the SARFAESI Act and the court's assessment of the borrower's actions and appeals.
Ratio Decidendi: The court's decision was based on the borrower's lack of diligence in pursuing the appeal and the forum shopping tactics employed, leading to the dismissal of the writ petition.
Final Decision: The writ petition was dismissed, and the related motion was closed, with no costs imposed.
In W.P(MD)No.16009 of 2015, third respondent herein/auction purchaser of the property, subject matter of sale certificate dated 29.03.2014 issued by the Indian Bank, Sivakasi Branch, Virudhunagar District, has sought for a Writ of Mandamus, directing the respondents 1 to 5 therein, to take physical possession of the said property and hand over the same, to the writ petitioner, by implementing the order made by the District Collector and District Magistrate, Virudhunagar District, first respondent therein, in Roc.No.E3/24710/2014 dated 02.12.2014.
2. Material on record discloses that pursuant to the sale certificate dated 29.03.2014, issued by the Indian Bank to Mr. N.Mariappan, the writ petitioner in W.P(MD)No.16009 of 2015, on 07.04.2014, a sale deed has been executed. On 14.08.2014, the District Magistrate and District Collector, Virudhunagar District, has passed an order, under Section 14 of the SARFAESI Act 2002, directing the Tahsildar, Sivakasi and the Assistant Superintendent of Police, Sivakasi, to take physical possession of the secured properties and documents relating thereto, and to forward the same to the Authorised Officer of the Secured Creditor/Chief Manager, Indian Bank, Sivakasi Branch, Sivakasi, under appropriate acknowledgement, within a period of one month, from the date of receipt of the letter dated 14.08.2014 of the District Collector under Section 14 of the Act.
3. The Tahsildar, Sivakasi, has been requested to submit a report of compliance, after executing the above said order. The Superintendent of Police, Virudhunagar, and the Revenue Divisional Officer, Sivakasi, have been requested to see that the order passed by the District Magistrate and District Collector, Virudhunagar District, is executed, in accordance with the provisions of the SARFAESI Act, by rendering assistance and protection for the same.
4. Subsequently, as against the statutory action, the borrower has filed an appeal under Section 17 of the Act before the Debts Recovery Tribunal at Madurai. He has also sought for stay of all proceedings. Order dated 14.08.2014 of the District Magistrate cum District Collector, has been kept in abeyance. The Bank has moved the Debts Recovery Tribunal at Madurai, and after hearing the parties therein, I.A.SR.No.6814 of 2014 in S.A.SR.No.6813 of 2014 has been dismissed on 12.09.2014, by observing that after the dismissal of the I.A. by the Tribunal, there is no legal impediment to execute the order dated 14.08.2014 passed under Section 14(1A) of the Act, and directions have been issued to the Tahsildar, Sivakasi, and Assistant Superintendent of Police, Sivakasi, to take appropriate action for immediate execution of the order passed under Section 14(1) of the Act, and to submit a report. The Superintendent of Police, Virdhunagar and Assistant Collector, Sivakasi, have been requested to see that the order passed on 14.08.2014 has been executed in accordance with the provisions of the SARFAESI Act, by rendering necessary assistance and protection.
5. Material on record discloses that the borrower has preferred an appeal against the order dated 12.09.2014 passed by the Debts Recovery Tribunal, Madurai. The appellate Tribunal has disposed of M.A(SA)No. 133 of 2014, without granting any injunction and thus, by order dated 02.12.2014, has confirmed the order dated 12.09.2014 of the Debts Recovery Tribunal, Madurai. Thereafter, the Debts Recovery Tribunal, Madurai, has dismissed S.A.No.303/2014, filed to set aside the order of the District Magistrate and Collector dated 14.08.2014. As against the said order, an appeal has been filed, under Section 18(1) of the SARFAESI Act, 2002, in AIR.No.650 of 2015 before the Debt Recovery Appellate Tribunal at Chennai.
6.The petitioner herein/Borrower has filed W.P.No.27679 of 2015, for a Writ of Mandamus, forbearing the Tahsildar, Sivakasi, Virudhunagar District, the 4th respondent therein, from implementing the order dated 25.08.2015 made in Roc.No.A1/12966/2014 p
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