Co-operative banks can invoke SARFAESI Act provisions; petitioners seeking equitable relief must disclose all relevant facts.

1. Writ petition has been filed to issue a writ of certiorari, to call for the records relating to the possession notice, dated 19.12.2014, issued by the Authorised Officer, The Pondicherry State Co - operative Bank Limited, Puducherry and also the consequential letter in PSCB.HO / 883/2016-17 / SARFAESI ACT dated 14.09.2016 issued by the Manager (SARFAESI Act), Pondicherry State Co - operative Bank Limited, and to quash the same.

2. Brief facts leading to the filing of the writ petition are as follows:

The petitioner has submitted that his father had mortgaged the properties comprised in S.Nos.187/2 and 187/3 of Embalam Village, Nettapakkam Commune Panchayat, Bagoor Taluk, Pondicherry District with the respondent - bank, borrowed a sum of Rs.8,25,000/- and executed a mortgage deed dated 19.07.2004 in favour of the Pondicherry State Co - operative Bank Ltd., Puducherry. Petitioner's father paid some amount to the respondent - Co - operative Bank and committed default in discharge of the said loan.

3. Material on record discloses that the 2nd respondent - Bank has issued two demand notices dated 10.10.2014 under S.13(2) of the SARFAESI Act, 2002, demanding petitioner's father to pay Rs.3,38,905/- and Rs.12,68,657/- respectively. Subsequently, the respondent has also issued two possession notices both dated 09.12.2014 under S.13(4) of SARFAESI Act, 2002 and intimated petitioner's father that two properties in Embalam Revenue Village (63) Re - Survey No.187/2, Cadastre No.461/17, Patta No.259 to the extent of 00.01.92 Hectares or 192 Sq. meter and Embalam Revenue village R.S.Nos.187/3, Cadastre No.461/17 Pt. Patta No.377 to the extent of 00.01.50 or 150 sq. meter, have been mortgaged.

4. The petitioner's father died on 29.10.2015. According to the petitioner, he was not aware of any of the proceedings initiated by the bank against his father, as mentioned above. He further submitted that he was not aware of the above mentioned mortgage deed executed by his father in favour of the respondent - Co - operative bank.

5. The petitioner has further submitted that the Manager (SARFAESI Act), Pondicherry State Co - operative Bank Ltd., Puducherry, third respondent herein, issued a letter vide PSCB HO / 883/2016-17 / SARFAESI Act, dated 14.09.2016, informing the petitioner that the above mentioned properties have been under symbolic possession of the respondent's Co - operative bank with effect from the date of serving of possession notice to his father on 09.12.2014. Only after receipt of the said notice, the petitioner came to know of the above mentioned proceedings initiated by the bank. He further submitted that after the death of his father, he has paid a sum of Rs.7,94,650/- to the respondents co - operative bank, towards discharge of liabilities.

6. After receiving the above said amount, the third respondent has issued a letter, dated 14.09.2016, instructing the petitioner not to erect any machinery or make alteration to the building failing which the bank would be forced to take necessary legal steps against him, as per law. Aggrieved over the same, the present writ petition has been filed. After setting out the facts in brief, on the issue, as to whether, a Co - operative Bank has jurisdiction to invoke the provisions of SARFAESI Act, 2002, on 15.11.2016, we issued notice to the respondents, returnable by 22.11.2016 and recorded as follows:
"Mr.T.P.Prabakaran, learned counsel for the petitioner made statement across the bar that the petitioner would not make any alteration to the building. Submission is placed on record.
6. On the aspect, as to whether, the petitioner would erect any machinery or not, learned counsel for the petitioner submitted that he would revert back, after getting instructions."

7. Pondicherry State Co