Standard Chartered Bank vs V. Noble Kumar

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2013 Supreme(SC) 767

H.L.GOKHALE, J.CHELAMESWAR
Standard Chartered Bank – Appellant
Versus
V. Noble Kumar – Respondent

Advocate Appeared:
For the Appellants:Siddharth Luthra, ASG, Sanjay Jain, Sr. Adv., Sanjeev Sagar, Ms. Ruchi jain, Mohd Irshad Hanif, Ajay Vir Singh J. Sanjay Kapur, Anmol Chadan, Ms. Shubhra Kapur Advocates.
For the Respondents:P.B. Suresh, Vipin Nair, U. Banerjee (For M/s. Temple Law Firm), T.R. Venkita Subramonium, Advocates.

Judgement Key Points

Yes, the case confirms that the District Magistrate (DM) must "satisfy" themselves regarding the contents of the Bank's affidavit before proceeding with the action. The court emphasized that the Magistrate is required to examine the factual correctness of the assertions made in the affidavit filed by the secured creditor. Only after being satisfied with the contents of the affidavit can the Magistrate pass the appropriate orders for taking possession of the secured asset (!) . This ensures that the Magistrate's decision is based on verified and accurate information, thereby safeguarding the interests of the borrower and maintaining procedural integrity.

Judgment :

Chelameswar, J.

1. Leave granted.

2. Since both the appeals raise a common question of law, the same are being disposed of by this common judgment. For the sake of convenience, we shall refer to the facts in Criminal Appeal arising out of Special Leave Petition (Criminal) No.2038 of 2011.

3. This appeal arises out of judgment and order of the High Court of Judicature at Madras in Writ Petition No.4600 of 2010 dated 23rd January, 2003.

4. The first respondent is a guarantor of the borrower to loan transaction whereby the second respondent borrowed money from the appellant herein. The undisputed facts are that the first respondent created a mortgage on certain property (Land and building comprised in Re-survey No.493/2 lying within the sub-registration district of Saidapet hereinafter referred to as the "secured asset") owned by him to secure the abovementioned loan. [Section 2 (zc) - "secured asset" means the property on which security interest is created;]

5. On 15.11.2007, a notice under section 13(2) [Section 13(2) Where any borrower, who is under a liability to a secured creditor under a security agreement, makes any default in repayment of secured debt or any instal

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2013 Supreme(SC) 767

H.L.GOKHALE, J.CHELAMESWARStandard Chartered Bank – AppellantVersusV. Noble Kumar – Respondent

Cases Referred (1)

H.L.GOKHALE, J.CHELAMESWAR
Standard Chartered Bank – Appellant
Versus
V. Noble Kumar – Respondent