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2023 Supreme(Online)(KAR) 777
HIGH COURT OF KARNATAKA
M.NAGAPRASANNA, J
MR. C. VELAN, S/O SRI. CHITHIRAI – Appellant
Versus
THE MAHILA CO-OPERATIVE BANK LTD. – Respondent
WRIT PETITION NO. 187 OF 2023 (GM-RES)
For the Appellants/Petitioners: SMT. SUMAN HEGDE
For the Respondents: SRI. K. RAVI SHANKARA BHAT
Court can protect tenant's possession pending resolution of lease disputes at Debt Recovery Tribunal.
Headnote:The writ petition filed under Articles 226 and 227 of the Constitution of India prays to quash the order dated 23.12.2022 in Crl.Misc.No.1545/22 passed by the 24th ACMM, Bengaluru. The petitioners are tenants affected by a loan default. The Court found it appropriate to protect petitioners' possession for thirty days to enable them to approach the Debt Recovery Tribunal as stated in their affidavit. The Court orders the protection of possession for a period of thirty days under Section 17(4)(a) of the SARFAESI Act, 2002, reserving liberty for the Bank to act as per the law if no such approach is made.
| Table of Content |
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| 1. tenants affected by loan default seek redress regarding possession. (Para 2 , 3) |
| 2. court protects tenant possession for 30 days for legal recourse. (Para 4 , 5) |
ORDER
Heard Sri. Suman Hegde, learned counsel appearing for the petitioners, Sri. K. Ravi Shankara Bhat, learned counsel appearing for respondent No.1 and have perused the material on record.
2. The petitioners are the tenants in a premises owned by respondent No.2 - the borrower from respondent No.1. Due to the loan borrowed by respondent no.2 becoming sticky, respondent No.1 has instituted certain proceedings under the SARFAESI Act, 2002 and has directed the vacation of the petitioners, who are tenants from the premises after having taken possession of the property, in accordance with law.
3. The petitioners have filed an affidavit with regard to the timeline in which they would vacate the premises and the affidavit reads as follows:
" I, C.Velan, s/o Sri.Chithirai, aged 48 years, residing at No.29, second Floor, door No.6, 7th cross, Yeshwanthpura, Bangalore-560022 do hereby solemnly affirm & state on oath as follows -
1. I am the petitioner no.1 in the above petition, well- conversant with the facts of the case. I am authorized by the other petitioner to swear to this affidavit on her behalf. Hence, I am swearing to this affidavit.
2. We have filed this writ petition with regards to the order passed by the learned 24th ACMM under section 14 of the SARFAESI act.
3. I submit that, we are willing to vacate the said property if our respective lease amounts are settled by either respondent.
4. I submit that, we are also willing to approach the Debt Recovery Tribunal [DRT], within the next 30 days, in order to determine the said leases and humbly pray for protection against process of taking possession by the bank as we have to pay huge amount of court fees before the DRT and we are struggling to arrange the court fee as we are very poor."
4. In terms of the affidavit what is indicated is that they are willing to approach the Debt Recovery Tribunal within thirty days in order to determine their rights and seek protection before the Debt Recovery Tribunal.
5. In the light of the affidavit so filed, I deem it appropriate to protect the possession of the petitioners in that portion, they are in possession, in the premises of respondent No.2 for a period of thirty days from today, reserving liberty to them to approach the Debt Recovery Tribunal under 17(4)(a) of the SARFAESI Act, 2002 . In the event, if the petitioners would not approach the Debt Recovery Tribunal within thirty days, the Bank would be at liberty to take such steps, in accordance with law.
With the aforesaid observations, the petition stands disposed. It is made clear that the aforesaid order will not enure to the benefit of any of the tenant that is in the premises and never to the borrower.
Ordered accordingly.
