High Court Kerala High Court

N.A.Sonni vs State Bank Of Travancore on 31 May, 2010

Kerala High Court
N.A.Sonni vs State Bank Of Travancore on 31 May, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 12251 of 2010(F)


1. N.A.SONNI,
                      ...  Petitioner

                        Vs



1. STATE BANK OF TRAVANCORE,
                       ...       Respondent

2. GREEN AGRO TRADE LINKS (P) LTD.,

3. SUNNY MATHEW,

4. ELIZABETH SUNNY,

                For Petitioner  :SRI.P.V.JYOTHI PRASAD

                For Respondent  :SRI.T.SETHUMADHAVAN

The Hon'ble MR. Justice P.R.RAMACHANDRA MENON

 Dated :31/05/2010

 O R D E R
                   P.R.RAMACHANDRA MENON, J
                  ---------------------------
                     W.P(C) No.12251 of 2010-F
                 ----------------------------
               Dated this the 31st day of May, 2010.

                           J U D G M E N T

The petitioner has approached this Court challenging the steps

taken by the respondent Bank in proceeding against the property of

the petitioner, which was purchased by him from one Mr.Abdulla

(who is not a party to this Writ Petition), who in turn had purchased

the same from the fourth respondent.

2. The case of the petitioner is that he is a ‘bonafide

purchaser’, as there was a clear encumbrance-free certificate, as

borne by Ext.P3. But now the petitioner has been served with Ext.P4

notice issued by the Bank under the relevant provisions of the

SARFAESI Act, stating that the property had actually been the

subject matter of a loan transaction availed by the second

respondent Company, in which, the third and fourth respondents

were the Directors, who had also given a `personal guarantee’ in

respect of the property. Subsequently, the borrower turned to be a

defaulter; under such circumstances, the Bank proceeded with steps

under the SARFAESI Act. Even though, the matter was taken up in

W.P(C) No.12251 of 2010-F 2

‘Adalath’, as borne by Ext.P5, nothing positively transpired and it is

being further proceeded with; which hence is sought to be

intercepted in this Writ Petition.

3. The learned counsel for the petitioner submits that,

despite explaining the sequence of events, the Bank has not paid

any heed to the same and absolutely no action is being taken

against the respondents 2 to 4, though the said respondents are

having sufficient means and property to clear their liability. It is

also contended that the fourth respondent had approached an `MP’

from Kerala by filing a petition and on forwarding the same to the

first respondent Bank, as borne by Ext.P6 letter, no action is being

taken by the first respondent Bank against the concerned

respondents or their properties.

4. The learned counsel for the Bank submits, with reference

to the contents of the statement filed before this Court, that the

action being pursued by the Bank is strictly in conformity with the

relevant provisions of law and that security interest was created over

the property on 9.3.2004, whereas the petitioner chose to purchase

the property only on 29.12.2008, that too without verifying the

original title deed, which of course was with the first respondent

W.P(C) No.12251 of 2010-F 3

Bank.

5. Going through the pleadings and materials on record, as

referred to above, this Court finds that the petitioner cannot

successfully sustain the challenge with respect to the security

interest. However, this Court finds that the Bank has also given

particulars of various items of properties belonging to the third and

fourth respondents and others concerned with regard to the loan

transaction, as given in the opening para of the statement. The

learned counsel for the Bank submits that, along with the steps

against the property now stated as purchased by the petitioner, the

other items of properties are also being proceeded against and that

absolutely no arbitrariness or discrimination is there, in the matter

of realisation of the loan amount.

6. In the above circumstances, this Court does not find it as

a fit case to interfere with the impugned steps or proceedings.

Accordingly, interference is declined and the Writ Petition is

dismissed. Rights and liberties of the petitioner, against the others

concerned, are left open.

Sd/-

ab                            P.R.RAMACHANDRA MENON, JUDGE