_ KUMAR; ADV.) "
IN THE HIGH COURT OF KARNATAKA, BA.NGALORE
DATED mzs 'I'i~:IE 17::-2 DAY OF JANuAmf"2,{3':1V"if'fA.'
BEFORE
THE) }~{C>N'BLE MR. JUS'1"'I'CE;' 43,'S.OipA"i5iV:;'<__
WRIT PETITION N034 1 53V2-53és.oOF. $20 1 db' {:;MRF;SO)*~ V 'V '
I3 ETWEEN t
.1. SM'.1'.SU}\/IA UMASHA?ۤ{Af% --
W/O UMASHANKAR -_ '
AGE:41YE1ARS " "
2. sR1.UMAs1w1ANjKAR A35.
S/O A.s.sADA$;;%11\zAiAH[
AGE: 46 " '
B0TH._R/O'wN0.29_,V._ » f
oLu'No.22~wj. 31%) STAGE
EAST, B m-Jz<'Rr}-AI) "
MALLEsHWARAiv£.;j"BANGAu0R_E»o3 PETITIONERS
{BY sR1,J.AYA'§i:<:UMA,::e. S."PA'I'iI., SR. ADV. FOR SRIANJAN
Or::m-O 1,§\r*I9§;:;*a;AL1A AT TCS
E s.I~;.1%'A14_:K, -FRIMROSE ROAD
4 "V.BANGA!,J(D'E(g£': W} 7'
O. REP; BY ITS AUTI"I.ORISEIJ OFFICER RESPONDENT
_ my s_r2fi'.v.sU12££s1--i, AIJV. FOR Ms. S.A.ASS"I.'S., ADVS.]
ThfiS{. writ: pe*t:it:'o;r1§ :.z::.»r_fi1eci tmder A2"ti»::I€ 226 and
" 227 of the: C0ns1:ii:ui:_i0n of India. prayzing to issue a writ:
31.11 tbs r1a'{;L1:"e of {:eri':i<)ra1"i cgzaassiziztrg ithzi ()i""dfi%F dated
'7
20.5.2010 passed by the \:'Hi ACMM at Bem§.§a1ore in
C.i\/£isC.No. 1 151/10 produced at Am1~B and etc.
Th::£%})€'£'itiOI1sC01"I1iI"1g' on for orders this day, the
Court made the following:
ORDER
in this writ petition, petitioners are eha11er1jg§it1§§.Vti1e
order dated 20.5.2010 passed by the 1ear11e:(:1:” V’
Chief Metropolitan Mag1stvrate,.A £11′ 0
C.iV£isC.No.1151/2010 vicie
also made to the notice . 12.20100 theii’ 0
respondent / Banv_k;._unc’1e”r’0§:§3eeti_on a’13′{A4}”V: of the
Seeuri1_vtiz,at1oI0i._–vantiVMR*e,;§beo11st:’uCt.ion of Finanetai Assets
and Er’1i”or4eerIieV:1t”«w.of Interest Act, 2002 (for
shott the hereintifter).
2.’-sV.It’v~.iAs the’t’:’a’se of the petitioners that they have
axfa’iieci:”‘ia.M ftiotzsing loan in the year 2006 in a sum of
payable in 1.79 equal installments. The
petit.ion__ers have failed to disctzarge the periodical
0’ ._i11st_aI1ment,s due on aeeotmt of some financial losses. A
_,V_3_’iot.iee was issued by the resptmdent / Bank on
-‘*3
‘)
13.04.2009 invoking Section 13(2) of the Aet. Aeeerding
to the petitioners, they have repiied te this notice on
23.042009 objecting te the claim made and assigning
certain reasens for norypayment of_4vV.reg3;i§:1.ar
installments. Thereafter. the responden_t–,=3.iiie;fIi<'?:'—- ~
resorted to coercive measures proVided_–'iifide:'. tiie uh'
and obtained an order from the:.&M;§tgistret.e"
Bank to take over the 'p}ossessiotr.:_ of " it
forcibly. The Bank has foreib.}§f"'takeh eos'seSsion of the
schedule property oh" by this
action; fietitictrthwivs filed.
3:’-.Ifi«.the– «assertions made in the writ
petition theft ‘pro'(:eti;1:1re as contemplated under the
the Rtiietswifvramed thereunder has not been
counsel for the respondent was
gitregfi 11.01.2011 to fife objections. Leameci
2″‘”‘.!”=se1f1ioI: vveounsel appearing for the petitioners submits
A iithere was procedure} iliegsiity committed by the
…I*f:;S}30f1{i€I1f /’ Bank in as much as the reply given by
the petitioners to the notice issued by the Bar1k_t.1__;_t1der
Section 13(2) of the Act has not been
any rate the petitioners were not eommu’:1i7Cate.§iV”‘ xtriethi ‘
any decision taken on the objeetiio’1is’rtsiisedfifi.Le2tm620i’.
eounsei for the respondent’ / Beink’*.t_tad
show to the Court that after given
by the petitioners, ,t?t;;s.:§fi its
views and that he xvotilid-i records in
this regard. is iisted today
before the COL}-ft»: ‘
viii_’Lear’r1eei~:’Ct!§VL1:1_sie.le:for the respondent / Bank
strongly eo’:1ter101e,<:iAA*h§?'~~-'tjiaeing before the Court the
-‘W._conifi1;u;;:1iea,i:i0n “‘ac’a0′{ressed by the Bank to the
o%peg£i%tior:e§fs 08.04.2009 and the reply given to the
by_’f)e1;iti0ners on 23.04.2009 that the notice
hi”~.«.._’*..dated O.€§A;’1O4.20O9 was not issued under Section 13(2) of
it but it was 21 de.m2md notice eailingg upon the
_»p_et.itioners to pay the a.mou:nt. Therefore, the reply
given by the petflioners on 23.04.2009 was not a reply
it”
5
to the notice issued under Section 13(2) of the .Aet. He
further contends, by referring to the statement of
objections filed and the document riamely the Vetptipper
advertisement published in the newspapers”.’t’h.at–._:tiiie’_
notice issued under Section 13(2) by ‘post
acknowledgement due addressed :_-to3 t1e1e”..fesi(3:e:itiA:;iA
address of the petitioners wvas.Vret1ii’tiedVwit:h }th.e_postétI
endorsement “Ieft”, hence respohderit II’ Bank
published the said “«-_r}.otiC_,e newspaper in
compliance wfih the””*r’:iIes’–therefore. it was
ineumvio’ezit”t’u.f3oh to file his objections.
As the ‘petit,ioners submit any reply, the Bank
proceeded ‘u”w.it1ri-.7the- iiieasures contemplated under
‘ ‘~ ..4.,g3¢e’tiori«.”‘}3{‘!§:) and of the Act to take possession of the
‘ -..res;ide;1.t’1’a.1″ho~;1Vs~e beionging to the petitioners.
heard Sridayakumar S.Patii, Eearned
“..,senior’rveGt1nsel appearing for the pet,itioners and the
“‘d1Aea1rri’ecI counsel for the respondent: / Batik, I find that
procedure adopted by the respondent / Bank in
6
issuing rzotice is not in conformity wit11 the provisions
prescribed. Rule 3 of the Sectlrity Interest
(Er1forcernent} Ruies 2002 provide as under:
‘*3. Demand notice.- {1} The service erej
demand notice as referred to in sub
of Section 1.3 of the Ordinance shall ‘V’
by delivering or transmitting
where the borrower or his
to accept the notice or of”bbAeh.aI,f
the borrower, actua3i3t__a–13d voitlra
or carries on business for
gain, by ‘~~regis’t.ered’:__ _”i’~..post with
V étddressed to the
borroweriiror. ’empowered to accept
tlaieasierviee Post or by courier or
.-by et=i1er- rtieans of transmission of
d_o.cu.r;1e11ts””–}i-ke fax message or electronic
« ” ‘~ ._ rIi2?1in..serytee:
where authorised officer has
reatsoi?iAit:o believe that the borrower or his
“agent is avoiding the servtce of the notice or
A that for any other reason, the service cannot
:be made as aforesaid, the service shat} be
effected by a.t’fixir:g a copy of the demand
notice on the outer deer er some other
:::or1spieL1ous part of the house er bt,1.ilding in
M
7
which the berrower or his agent ordinanly
resides or Carries on business or personally
works for gain and also by publishing the
eozntents of the demand notice in two leading
newspapers, one in vemaeular Ia1:r1guag:e;”,
hav1’r1g sL1ffieien_t eireulation in that:
(2) ‘ l
{3}
(4)
‘1
8. It is clear from the_’pro\?i–s_e’w–t0 {.;;.).”‘ot
Rule 3 that if the auth0rise’ti..:_b’ffi_eerVsf tile gank has
reason to believe :«y»*etS’«.bei.nglAAat?oided by
the borrower er’fsr’lan’y,fj’L–he1* reasen the service cannot
be effected,’ he c§a:;ll’:<«;s.aj§:; to effect the sewiee by affixing
a eejgy at the de:11.%111fI notice on the outer door or some
'Q.iil'£E:I' -eV0'hspi't:s1_0us part of the house or building in
which th.eV–"fbo§"r0wer resides or carries on busiraess and
als0"'bytp_uhlishing the contents of the demand notice in
f_"'twe""leading newspapers. The requirement of affixture
' aiizd pubI1'eati0r: in the two newspapers are to be done
together}. Compliarme of one only of the requirements
will not ameum to eernpiying with the requirements
sf
/ XE
spelt out therein. The conjunction ma' fo11ovv'ec1V.3?3y the
expression 'also by mlblishing the (T.'01"£i€'.I1tS4–'Vi'i'"}'4:'.f.;'§?:<O
leading newspapers' makes the intention V'
making aut1'1or;ity very c1e;:{rA'V"'thg:1t.A .;botf1i_ V these
requi1'e:nent,s have to be c11m11ia_tfVe1y co;_:f2p'1iei:i
The reason behind such req;i'1remen£._of3Aaffixiure and
also pubiication in t"w'o..v_1eacEing'newspapershisVhadvisedly
incorporated having regard tofile.–«r:1V1'a!s~ti:e.. nature of the
consequerlces t'h_a _?- ensue. »
ol:')_'v;'eHc:V1:ior1s filed by the Bank,
there –no'1:hVing_.to:'ehox§§r'"tir;iat such affixture was made
on 1:he,hot,2s"e ._of'th'e 1.')-etéifiorlers nor any material in this
"'~reg'ard is placed hehfore this Court. Hence, it has to be
issued under Sec:t1Ton 13(2) of the
.94.
Act”-«.._isgnot?’ in accordance with the requirements
“ennmera-fled under Sections 13(2) and (3) of the Act read
,”w_ith SeCm’it.y Interest’ {E11fbFC€3II1€I3{‘,) Rules, 2002.
8. However, at this stage, learned eeunsel fer the
petitioners submits that his Client is wiilingte
the instaiinientis that have become due, if t:}3ree.’me’37’tEt1§_4″ ”
time from t()day is given. To sif1tfi¥v”i1is Iqoriefidee, he is
ready to hand over a DD. vof *f.:ét\I’f
the responclerat / Bank,
9. Learned c0Ltrise_i’ / Bank
however present the
DD. to the I’et§rese1’1tat.i0n if at all he
needs fiiiiit it is for the Bank to
consider the sar1*1~e”.’=,
Haviufig~reg_a3?d to the aforementioned facts and
the “th_e offer made by the petitioners that they
ate”*;afil1.if1;§ej*:t:et3’usettle the amount. that has fallen due
towatctsixittstallment. payable cetipied with the fact that a
35,00,000/~ is sought to be paid by way of D.D.,
I find it just: and proper to permit the pet:it,ie:mers to
make a rep_rese2’1tiatieta to the respondent / Eafik
enclosing the LID. ff)!” ?.5,0G,OC30/- 2-zr1d reqtiesting’ far
it
time to pay the instaiiments. The Bank shalt treat’ this
a reply given to the notice issued under Seeffi<)n-4e1'~3['2)
and consider the same and take approprizitfe__–de::eision
accordancre with iaw. This o1'de:j"is' pasAs'ed in_V'ie\}.: om1e.
fact that the notice issued by nz1'd'e1*
13(2) is found to be d'efee.tiVe reasons
aforementioned.
Hence, the writ:petitiQn’is’eacerjrgiivngly disposed of
setting aside v the ‘Magistrate.
to Vfmestore the possession of
the premises 1’_r1znie§:iiate..iy:'<
. RV