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KARNATAKA HIGH COURT
H.G. Ramesh and Alok Aradhe, JJ.
M/s. The Malleshwaram
Co-Operative Bank Ltd. —Appellant
versus
Dr. Mahesh Kumar Sahu
and Ors. —Respondents
Writ Appeal No.799 of 2018 and Writ Appeal Nos.935-937 of 2018 (GM-RES)
Decided on 28.11.2018 ~
For the Appellant:Sri K.V. Lokesh for M/s. Law Vibes, Advocates
For the Respondents:Sri Jayakumar S. Patil, Senior Counsel for Sri P.B. Ajit, Advocate
IMPORTANT POINT
Provisions of SARFESI Act are applicable to Co-operative Banks constituted under Karnataka Co-operative Societies Act, 1959.
Headnote:SARFESI Act—Sale of mortgaged asset—Single Judge has directed appellant to defer proposed sale of mortgaged property until further orders—Provisions of SARFESI Act are applicable to Co-operative Banks constituted under Karnataka Co-operative Societies Act, 1959—Matter requires to be reconsidered by Single Judge—Impugned order set aside and matter remitted to Single Judge for reconsideration. (Paras 1, 2 and 3)
Result: Appeals disposed of.
H.G. Ramesh, J.—By consent of the learned Counsel on both sides, these intra Court appeals are finally heard on merits and are being disposed of by this judgment. These appeals are directed against an interlocutory order dated 08.02.2018 passed in W.P.Nos.23932-23935/2017 whereby the learned Single Judge has directed the appellant to defer the proposed sale of the mortgaged property until further orders.
2. It appears that the learned Single Judge has passed the aforesaid interim order on the ground that the question as to whether the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI Act) is applicable to Co-operative Banks or not is pending consideration before the Hon’ble Supreme Court.
3. It is not brought to our notice any order of the Supreme Court staying the applicability of the SARFESI Act to Co-operative Banks. It is relevant to state that a Division Bench of this Court in Karnataka Rajya Kaigarika Sahakara Bank Niyamita vs. V.Krishnaswamy [ILR 2012 KAR 4638] has held that the provisions of the SARFESI Act are applicable to Co-operative Banks constituted under the Karnataka Co-operative Societies Act, 1959. The effect of the aforesaid Division Bench judgment has not been considered by the learned Single Judge. Hence, in our opinion, the matter requires to be reconsidered by the learned Single Judge. Accordingly, we make the following order:
The impugned order dated 08.02.2018 passed in W.P.Nos.23932-23935/2017 is set aside. The matter is remitted to the learned Single Judge for reconsideration. All contentions of both the parties are kept open. The appeals are accordingly disposed of. In view of disposal of the appeals, I.A.No.1/2018 does not survive for consideration; it stands disposed of accordingly.
Appeals disposed of. Appeals disposed of.
