High Court Kerala High Court

Pennukunju vs The Authorised Officer on 23 December, 2010

Kerala High Court
Pennukunju vs The Authorised Officer on 23 December, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 35680 of 2010(H)


1. PENNUKUNJU, AGED 77 YEARS,
                      ...  Petitioner

                        Vs



1. THE AUTHORISED OFFICER, THE FEDERAL BANK
                       ...       Respondent

2. THE FEDERAL BANK LTD., MUTTAR BRANCH,

3. SURENDRAN, S/O. LATE DIVAKARAN,

                For Petitioner  :SRI.B.PRAMOD

                For Respondent  :SRI.MOHAN JACOB GEORGE

The Hon'ble MR. Justice C.K.ABDUL REHIM

 Dated :23/12/2010

 O R D E R
                       C.K. ABDUL REHIM, J.
                -----------------------------------------------------
                     WP(C) No. 35680 of 2010
               ------------------------------------------------------
          Dated this the 23rd day of December, 2010

                              J U D G M E N T

The petitioner is the mother of the 3rd respondent.

Petitioner is challenging the proceedings initiated by

respondents 1 and 2 against the 3rd respondent under the

Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 (SARFAESI

Act). The 3rd respondent had defaulted repayment of a

loan availed from respondents 1 and 2, and as a

consequence the immovable property, which is the secured

asset, was proceeded against. Ext.P3 is the notice issued

by the first respondent under Section 13(2) of the Act.

2. According to the petitioner she has got life interest

in the residential building contained in the immovable

property which is now being proceeded against. It is stated

that the petitioner along with others have executed Ext. P1

partition deed settling the property in favour of the 3rd

WP(C) No. 35680 of 2010
2

respondent, with a reservation of the rights of the

petitioner to reside in the house till her life. Contention is

that, since the petitioner has not joined as a guarantor in

the loan transaction, her interest could not be affected by

virtue of the impugned proceedings.

3. It is noticed that the proceedings initiated is only at

the stage of notice issued under Section 13(2). It is always

left open to the respondent Bank to proceed with further

steps without prejudice to rights if any available to the

petitioner for continuing residence in the house in question.

Admittedly, the title of the property vests with the 3rd

respondent and the petitioner is claiming only a limited

right of residence. As long as no steps is initiated to evict

the petitioner from the residential building it could not be

said that the petitioner is in any way affected by the

proceedings impugned. Therefore I am not impressed with

the contentions that the proceedings now initiated is liable

WP(C) No. 35680 of 2010
3

to be interfered with at this stage. However, the petitioner

will be at liberty to raise appropriate challenge if any action

is initiated for dispossessing her from the residential house.

The writ petition is disposed with the above

observations.

C.K. ABDUL REHIM,
JUDGE
rkc