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2020 Supreme(Online)(KER) 10898
HIGH COURT OF KERALA
AMIT RAWAL, J
BAIJU PAUL – Appellant
Versus
PEOPLES URBAN CO-OPERATIVE BANK LTD NO.51 – Respondent
WP(C)/33388/2019
SMT.S.MUMTAZ; SRI.DEVAPRASANTH.P.J.
Compliance with interim court orders is critical; failure to comply can lead to dismissal of petitions concerning statutory enforcement actions.
Headnote:
Securitisation - Writ petitions - SARFAESI Act - Sec 13, 17 - The court dismissed the petitions challenging mortgage property sales under the SARFAESI Act, emphasizing the petitioners' failure to comply with interim deposit orders.
Fact of the Case:
Petitioners challenged the sale of mortgage properties initiated under the SARFAESI Act. The court had directed them to deposit a certain amount, which they failed to do, leading to default on the court's orders.
Finding of the Court:
The court found that the petitioners defaulted on complying with the interim order, which warranted the dismissal of the petitions as no ground for continuing the stay was established.
Issues: Whether the petitions against the sale of mortgage properties under the SARFAESI Act should be allowed despite the petitioners' non-compliance with the court's interim order.
Ratio Decidendi: The court reaffirmed that non-compliance with interim orders justifies the dismissal of petitions challenging actions taken under statutory frameworks like the SARFAESI Act.
Final Decision: The writ petitions are dismissed.
JUDGMENT
In all the four writ petitions challenge has been made to the sale of the mortgage properties owing to the initiation of the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act' for short).
2. During the pendency of this writ petitions, petitioners were directed to deposit certain amount while granting interim order, which the petitioners failed to deposit. In such circumstances, petitioners have defaulted the direction of this Court and therefore, the interim stay granted by this Court cannot be ordered to continue much less the pendency of these writ petitions.
No ground of interference is made out.
These writ petitions are accordingly dismissed.
Sd/-
AMIT RAWAL JUDGE
APPENDIX OF WP(C) 33347/2019 PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE LOAN ACCOUNT PASS BOOK OF RS.25 LAKHS EXHIBIT P2 TRUE COPY OF THE LOAN ACCOUNT PASS BOOK OF RS.5.5 LAKHS EXHIBIT P3 TRUE COPY OF THE SAID NOTICE OF SALE DATED 30.10.2019 ISSUED ON THE PETITIONER EXHIBIT P4 TRUE COPY OF THE RECEIPT OF PAYMENT DATED 15.11.2019 EXHIBIT P5 TRUE COPY OF THE REQUEST LETTER SUBMITTED BY THE PETITIONER TO THE RESPONDENT DATED 2.12.2019 APPENDIX OF WP(C) 33380/2019 PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF SALE NOTICE PUBLISHED IN THE NEW INDIAN EXPRESS NEWS PAPER DATED
6/11/2019 IN WHICH ITEM NO 6 IS SHOWN AS PETITIONER EXHIBIT P2 TRUE COPY OF THE REQUEST LETTER ISSUED BY THE PETITIONER TO THE RESPONDENT DATED
15/11/2019.
APPENDIX OF WP(C) 33383/2019 PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE LOAN ACCOUNT PASSBOOK EXHIBIT P2 TRUE COPY OF SALE NOTICE DATED 28.10.2019 ISSUED BY THE RESPONDENT TO THE PETITIONER.
EXHIBIT P3 TRUE COPY OF RECEIPT OF PAYMENT DATED
05.11.2019.
EXHIBIT P4 TRUE COPY OF THE REQUEST LETTER ISSUED BY THE PETITIONER TO THE RESPONDENT DATED
02.12.2019.
APPENDIX OF WP(C) 33388/2019 PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF SALE NOTICE PUBLISHED IN THE NEW INDIAN EXPRESS NEWS PAPER DATED
6.11.2019 IN WHICH ITEM NO.1 IS SHOWN AS PETITIONER.
EXHIBIT P2 TRUE COPY OF THE REQUEST LETTER ISSUED BY THE PETITIONER TO THE RESPONDENT DATED
15.11.2019.
