BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT RESERVED ON : 10.01.2024 PRONOUNCED ON : 08.04.2024 CORAM:

THE HONOURABLE MR.JUSTICE D.KRISHNAKUMAR and THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR W.P(MD).No.21684 of 2023 and WMP(MD).Nos.18078 & 22876 of 2023 K.Latha Kannan ...Petitioner Vs

1.The Authorized Officer Aditya Birla Housing Finance Limited Registered Office Indian Rayon Compound Veraval, Gujarat 362 266

2.Aditya Birla Housing Finance Limited Rep.by its Branch Manager No.48-A, 3^rd Floor New Millennium Complex Bye-Pass Road, Kalavasal Madurai 625 016

3.Aditya Birla Sun Life Insurance Company Ltd., Rep.by its Authorized Signatory G-Corp Tech Park, 5^th & 6^th Floor Kasar Wadavali, Ghodbunder Road Thane (W) 400 601 ..... Respondents Prayer : Writ Petition has been filed under Article 226 of Constitution of India to issue a writ of Certiorari, calling for the records relating to the impugned order dated 19.06.2023 made in Cr.M.P.No.401 of 2023 passed by the learned Chief Judicial Magistrate, Madurai and quash the same.

For Petitioner : Mr.V.Veerapandian For M/s.Vastlaw Associates For R1 & R2 : Mr.M.Arunachalam

O R D E R

(Made by R.VIJAYAKUMAR,J.

The present writ petition has been filed challenging the order passed by the Chief Judicial Magistrate, Madurai under Section 14 of the SARFAESI Act in Cr.M.P.No.401 of 2023 dated 19.06.2023.

(A)Facts leading to the filing of the present writ petition are as follows:

2.According to the petitioner, she and her husband Kannan have availed a housing loan from the second respondent Housing Finance Company to a tune of Rs.40,70,000/- by mortgaging their property on 24.03.2021. At the instance of the Housing Finance Company, they had agreed for taking a life insurance policy with the third respondent. The third respondent had issued a life insurance policy on 30.03.2021 based upon the proposal submitted by the petitioner's husband.

3.The petitioner's husband had passed away on 22.05.2022 leaving behind the petitioner and his three minor daughters. The petitioner raised a claim on 14.07.2022 with the Life Insurance Company namely the third respondent herein requesting them to pay the claim amount to the Housing Finance Company so that the loan amount could be adjusted.

4.The Life Insurance Company had repudiated the claim of the writ petitioner by a communication dated 16.09.2022 on the ground that the deceased member had passed away due to lung cancer. At the time of submitting the proposal, the deceased suffered right side Bell's Palsy. However, the same was not disclosed by the deceased member in the past medical history. Therefore, due to the material non-disclosure on the part of the deceased member, they are constrained to repudiate the claim.

5.The petitioner herein had sent a legal notice to the Life Insurance Company on 22.11.2022 instructing them to disburse the benefit of the deceased member and in case of failure, they would approach the Consumer Court. The Insurance Company had addressed a reply on 09.12.2022 again reiterating their reply dated 16.09.2022. Aggrieved over the said repudiation, the writ petitioner had filed C.C.No.93 of 2023 before the District Consumer Disputes Redressal Commission at Madurai with a prayer to direct the Life Insurance Company to pay a sum of Rs.43,59,346/- being the outstanding amount of the Housing Finance Company to the complainant. The petitioner had further prayed for a sum of Rs.10.00 lakhs from the Housing Finance Company towards physical stress and mental agony. In the said consumer complaint, the writ petitioner had further prayed for a direction as against the Housing Finance Company from not proceeding further with any recovery proceedings against the property.

6.While the above said proceedings were pending, the Housing Finance Company had issued a demand notice on 18.10.2022 for default in payment of the monthly installment towards housing loan. A possession notice under Section 13(4) of the SARFAESI Act was issued on 17.02.2023. Challenging the sai