IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 17.11.2023 CORAM THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY WP Nos.5845, 5852, 5854 and 5858 of 2023 and WMP Nos.5846 , 5847, 5848, 5850, 5856, 5857, 5859, 5862, 5863 and 5865 of 2023

1. M/s.Subhashree Ram Garments Pvt. Ltd., Rep. By its Authorized Signatory, S.F.No.752/756, Soosaiyapuram Colony Road, Rayapuram, Tirupur 641601.

2. S.Ramasamy

3. R.Shanthi

4. S.Nachimuthu

5. N.Mohan Kumar

6. Ponnathal

7. Amuthavalli .. Petitioners in all WPs.

-vs-

1. The Authorized Officer, Union Bank of India, Asset Recovery Branch, P.B.No.8, 235, Oppanakara Street, Coimbatore 641 001.

2. The Assistant General Manager, Union Bank of India (Former Corporation Bank has been merged with Union Bank of India), Tirupur Main Branch, No.300/1, Mangalam Road, Tirupur 641 604.

3. The Authorized Officer, Union Bank of India, (Former Corporation Bank has been merged with Union Bank of India), Tirupur Main Branch, No.300/1, Mangalam Road, Tirupur 641 604.

4. The General Manager, Field General Manager's office, Union Bank Bhavan, 3rd Floor, 139, Broadway, Chennai 600 104.

5. The Regional Head, Regional Office, Union Bank of India, 1087D, 3rd Floor, Krishna Towers, Pappanaickanpalayam, Avinashi Road, Coimbatore 641 037. .. Respondents in all WPs.

Prayer: Petitions filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus – (i) to call for the records leading to issuance of the impugned possession notice issued by the 3^rd respondent under Rules 8 read with S.13(4) of the SARFAESI Act dated 16.03.2022 (WP.No.5845/2023); (ii) to call for the records leading to the issuance of the impugned demand notice under S.13(2) of the SARFAESI Act dated 29.09.2022 by the 1^st respondent (WP. No.5852/2023); (iii) to call for the records leading to the issuance of the impugned demand notice under S.13(2) of the SARFAESI Act dated 25.01.2023 published in Tamil Daily Dinamani on 04.02.2023 by the 1^st respondent (WP. No.5854/2023); and (iv) to call for the records leading to the issuance of the impugned demand notice under S.13(2) of the SARFAESI Act dated 25.01.2023 published in Engligh Daily Indian Express on 04.02.2023 by the 1^st respondent (WP. No.5858/2023) and quash the same and direct the respondents not to take any action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for the fraudulent transaction with the connivance of the Bank Officials which is the subject-matter of C.C.No.302 of 2019 on the file of Chief Judicial Magistrate, Tirupur (Court Number 8, Judicial Magistrate-II).

For the Petitioner in all WPs. : Mr.D.Prabhu Mukunth Arun Kumar For the Respondents in all WPs. : Mr.Sarath babu * * * * *

COMMON ORDER (Made by the Hon'ble Chief Justice)

We have heard Mr.D.Prabhu Mukunth Arun Kumar, learned counsel for the petitioners and Mr.Sarath Babu, learned counsel for the respondents.

2. The petitioners were sanctioned a credit facility by the respondent Bank. According to the petitioners, the account of the petitioners' company was erroneously debited for a sum of Rs.3.98 crores by discounting two bills without their knowledge. The correspondence took place between the parties. Eventually, a complaint is filed by the petitioners to the Commissioner of Police. The First Information Report bearing No.27/2018 is registered against three bank officials and one Rajesh Kanna, Senthilkumar and Priya. On or about 09.11.2018, the bank issued a notice under Section

13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short 'the SARFAESI Act'). The petitioners gave a reply. Possession notice is also issued under Rule 8(1) of the Security Interest (Enforcement) Rules, 2002. Subsequently, again on 29.09.2022, the first respondent issued a fresh notice under Section 13(2) of the SARFAESI Act. The petitioners filed a reply to the