Serial No. 28

Regular Cause List

HIGH COURT OF JAMMU & KASHMIR AND LADAKH

AT SRINAGAR

i) WP (C) No. 1412/2021:

Jammu and Kashmir Bank Ltd. & Ors.

… Petitioner(s)

Through: -

Mr Z. A. Shah, Senior Advocate with

Mr A. Hanan Kalwal, Advocate.

V/s

M/S Pureweave Fashions Pvt. Ltd & Anr.

… Respondent(s)

Through: -

Mr Syed Faisal Qadri, Senior Advocate with

Mr Salih Pirzada, Advocate.

ii) WP (C) No. 2715/2021:

M/s Pureweave Fashion Private Limited

… Petitioner(s)

Through: -

Mr Syed Faisal Qadri, Senior Advocate with

Mr Salih Pirzada, Advocate.

V/s

Jammu and Kashmir Bank Limited & Ors.

… Respondent(s)

Through: -

Mr Z. A. Shah, Senior Advocate with

Mr A. Hanan Kalwal, Advocate.

CORAM:

Hon’ble Mr Justice Ali Mohammad Magrey, Judge

Hon’ble Mr Justice Puneet Gupta, Judge

(ORDER)

20.05.2022

Magrey-J (Oral):

01.

These two Writ Petitions involve akin questions of fact and the

law and are, thus taken up together and proposed to be disposed of by a

common Order.

WP (C) No. 1412/2021 c/w

WP (C) No. 2715/2021

Page 2 of 7

02.

The subject matter of both these Petitions relates to the

proceedings initiated by the Jammu and Kashmir Bank Limited (for short

‘the Bank’) under the provisions of the Securitization and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002

(hereinafter referred to as ‘the Act of 2002’), which proceedings are

challenged after having reached the stage of Sub-Section 4 of Section 13 of

the Act by the Bank before the Court of learned Principal District Judge,

Srinagar arising out of an application filed under Section 17-A of the Act,

as was in vogue at the relevant point of time. During the course of pendency

of the aforesaid proceedings, the learned Principal District Judge, Srinagar

has passed orders dated 3^rd of July, 2019, 6^th of November, 2019, 13^th of

December, 2019, 12^th of February, 2019 and 2^nd of March, 2020, whereby

and whereunder the secured creditor/ the Bank has been asked to give the

borrower-M/s Pureweave Fashions Private Limited, CMA Building

Padshahi Bagh, Bishambar Nagar, Khayam, Srinagar (for short ‘the

Borrower’) an opportunity for submitting the offer in writing before the

Bank with further direction to the Bank to make the final settlement on

receipt of the said offer. The Bank, feeling aggrieved of the said orders

passed by the learned Principal District Judge, Srinagar, challenged the

same in Writ Petition bearing WP (C) No. 1412/2021 on the grounds

detailed out in the memo of Petition with particular reference to the fact that

the orders are without jurisdiction inasmuch as the issue of settlement

cannot be made the subject matter of judicial review.

03.

In the said Writ Petition filed by the Bank, the Court, on

consideration of the matter and in terms of Order dated 28^th of July, 2021,

WP (C) No. 1412/2021 c/w

WP (C) No. 2715/2021

Page 3 of 7

while issuing notice to the other side, stayed further proceedings in the

appeal/ application filed by the borrower under Section 17-A of the Act

pending before the learned Principal District Judge, Srinagar.

04.

The pleadings on record further reveal that pending final

decision in the aforesaid Writ Petition, the Bank appears to have

approached the learned Chief Judicial Magistrate, Srinagar for seeking

appropriate orders under Section 14 of the Act. In the said proceedings, the

learned Magistrate proceeded to pass an Order dated 18^th of December,

2021 by directing the Station House Officer concerned to take possession of

the mortgaged property and handover the same to the Authorized Officer of

the Bank. This Order dated 18^th of December, 2021 passed by the learned

Magistrate under Section 14 of the Act is assailed by the borrower in Writ

Petition bearing WP (C) No. 2715/2021.

05.

Mr Z. A. Shah, the learned Senior Counsel, appearing on

behalf of the Bank/ Pet