Back
2023 Supreme(P&H) 3059
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VINOD S. BHARDWAJ, J.
Atul Paints – Petitioner
Versus
Additional District Magistrate, Ludhiana – Respondent
CWP-21296 of 2023
Decided On : 07-11-2023
Er. Sandeep Suri, Advocate; For the Petitioner
The court mandated the District Magistrate to decide a pending complaint regarding the concealment of facts under the SARFAESI Act within four months, ensuring a fair hearing.
Headnote:(A) SARFAESI Act - Section 14 - Complaint filed under Section 340 Cr.P.C. regarding concealment of material facts - The petitioner sought directions for the District Magistrate to decide the complaint against the authorized officer of ASREC (India) Ltd. regarding fraudulent permissions obtained under the SARFAESI Act - The court directed the District Magistrate to decide the complaint within four months, ensuring a reasoned decision after hearing both parties. (Paras 1, 7)
(B) Writ Jurisdiction - The court emphasized the need for timely resolution of complaints and the importance of addressing grievances raised by the petitioner regarding procedural irregularities. (Paras 1, 7)
Facts of the case:
The petitioner challenged the actions of ASREC (India) Ltd. regarding notices issued under the SARFAESI Act, asserting that material facts were concealed in the proceedings, including pending litigations and an FIR against the property owners. The petitioner sought a timely decision on their complaint filed with the District Magistrate.
Findings of Court:
The court found merit in the petitioner's request for a timely resolution and directed the District Magistrate to rule on the complaint within four months.
Issues: The main issue was whether the authorized officer of ASREC (India) Ltd. acted appropriately in light of the ongoing litigations and whether the complaint by the petitioner should be addressed.
Ratio Decidendi: The court held that the District Magistrate must consider the complaint filed by the petitioner and provide a reasoned decision, ensuring fair hearing for both parties.
Result: Petition disposed of with directions.
JUDGMENT
Vinod S. Bhardwaj, J. (Oral)
The petitioner has approached this court for seeking directions to the respondent to decide the complaint dated 03.12.2022, (Annexure P- 10) filed under Section 340 Cr.P.C. against the authorised officer of M/s ASREC (India) Ltd. for concealing material facts regarding various court litigations and F.I.R. to District Magistrate, Ludhiana and obtained permissions fraudulently under Section 14 of SARFAESI Act from District Magistrate, Ludhiana vide Application/ MISAL No. 843/2022 dated 19.09.2022 and permission granted vide Endorsement No. 6552- 55/Peshi/ADC dated 27.10.2022.
2. It has been averred in the present petition that M/s ASREC (India) Ltd. issued a demand notice dated 11.04.2022 for Rs.26,96,23,532.70 informing regarding a notice under section 13(2) of the SARFAESI Act which was issued to petitioner on 04.05.2016. (ANNEXURE P-1). Petitioner later raised objections regarding denying service of notice dated 04.05.2016 issued by M/s ASREC (India) Ltd, but without considering the facts M/s ASREC (India) Ltd.'s authorized officer on 05.07.2022 issued notice under Section 13(4) of the SARFAESI Act. Aggrieved by the notice of symbolic possession under Section 13(4), the petitioner filed CWP-18679- 2022 dated 20.08.2022 under title "M/s Atul Paints & Anr. v. Authorised officer ASREC (India) Ltd. & Anr.", in which notice of motion for 16.01.2023 was promulgated on 25.08.2022 (ANNEXURE P-3) which was duly received by the counsel for ASREC Ltd. Further the petitioner apprised the authorised officer M/s ASREC (India) Ltd. vide registered post dated 21.09.2022. Copy of the letter, postal receipt, delivery postal receipt is enclosed as (ANNEXURE P-4). Sister of the petitioner also proceeded to invoke the extraordinary writ jurisdiction of this court in CWP-4095-2023 under title "Aastha Ahluwalia v. Authorised Officer M/s ASREC (India) Ltd. And others" wherein the District Magistrate, Ludhiana is also made a party. The Hon'ble High Court was pleased to grant "status quo" regarding all properties in question on 28.02.2023 (ANNEXURE P-5) and the same was conveyed to the respondent vide various representations and reminders dated 28.02.2023 and 18.03.2023 along with postal receipts and delivery receipts (ANNEXURE P-6).
3. Another writ CWP-21765-2022 dated 16.09.2022 was filed by co-owner of the said property Jaswinder Pal Singh Walia in which this Hon'ble High Court stayed all proceedings under SARFAESI also at DRT till the outcome of the case. Copy of stay order dated 15.11.2022 is enclosed (Annexure P-7).
4. An F.I.R. bearing no. 46 dated 02.04.2016 has also been registered against owners of the mortgaged property by one NRI Harbhajan Singh S/o Late Sh. Beant Singh which is under trial as case title 'State v. Sanjay Dhingra & others' at District court, Ludhiana under case no. CHI/31537/2019. The NRI complainant has challenged the chain of title deeds of four properties from 99-A to 102-A situated at Sarabha Nagar, Ludhiana, Punjab, including the mortgaged property no. 100- A, Sarabha Nagar Ludhiana, as forged chain of title deeds executed since 1988, which is also case property in the court (ANNEXURE P-9).
5. The pendency of the court cases, as mentioned above, had been communicated from time to time to M/s ASREC (India) Ltd. through its representative and through various registered posts but the authorized officer of ASREC in his affidavit tendered before District Magistrate, Ludhiana in the application filed under Section 14 of the SARFAESI Act, concealed about the facts of litigations and stays granted in the same and on the basis of the said Representation order dated 27.10.2022 under section 14 of the SARFAESI Act has been passed.
6. Petitioner has filed complaint regarding the concealment of material facts before District Magistrate on 03.12.2022 (ANNEXURE P-10) and reminders have also been sent thereafter. However, no decision has been taken thereupon.
7. Taking into consideration that it is
