{"id":119965,"date":"2010-10-11T00:00:00","date_gmt":"2010-10-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-abdul-salam-vs-authorised-officer-and-chief-on-11-october-2010"},"modified":"2015-05-29T23:01:00","modified_gmt":"2015-05-29T17:31:00","slug":"k-abdul-salam-vs-authorised-officer-and-chief-on-11-october-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-abdul-salam-vs-authorised-officer-and-chief-on-11-october-2010","title":{"rendered":"K.Abdul Salam vs Authorised Officer And Chief … on 11 October, 2010"},"content":{"rendered":"
Kerala High Court<\/div>\n
K.Abdul Salam vs Authorised Officer And Chief … on 11 October, 2010<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 27232 of 2010(D)\n\n\n1. K.ABDUL SALAM,PROPRIETOR,CROWN TEX,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. AUTHORISED OFFICER AND CHIEF MANAGER,\n                       ...       Respondent\n\n2. CHIEF MANAGER,INDIAN BANK,HEAD OFFICE,\n\n3. M\/S.EAST WEST TRAVEL AND TRADE LINKS\n\n4. AHAMMED HUSSAIN,S\/O.SHAMSUDDIN MUSALIYAR\n\n                For Petitioner  :SRI.N.K.MOHANLAL\n\n                For Respondent  :SRI.S.EASWARAN\n\nThe Hon'ble MR. Justice C.K.ABDUL REHIM\n\n Dated :11\/10\/2010\n\n O R D E R\n                    C.K.ABDUL REHIM, J.\n\n                 -------------------------------------------\n                   W.P.(C).No.27232 of 2010\n                 -------------------------------------------\n\n           Dated this the 11th day of October, 2010\n\n\n                         J U D G M E N T\n<\/pre>\n
                         ———————-\n<\/p>\n
           Petitioner claims to be a tenant in a building<\/p>\n
which was proceeded against under the provisions of the<\/p>\n
Securitisation and Reconstruction of Financial Assets and<\/p>\n
Enforcement of Security Interest Act, 2002 (SARFAESI Act),<\/p>\n
at the behest of respondents 1 and 2. Consequent to default<\/p>\n
committed in repayment of a loan availed by the 3rd<\/p>\n
respondent, proceedings under the SARFAESI Act was<\/p>\n
initiated and the immovable properties of the 3rd respondent<\/p>\n
wherein the building in question is situated, was taken over<\/p>\n
symbolic possession.          The petitioner claims that he is<\/p>\n
conducting business in textiles in a portion of the building in<\/p>\n
question since 1996 onwards, on the basis of a rental<\/p>\n
arrangement entered with the 3rd respondent.<\/p>\n
      2.   The petitioner had approached this court on an<\/p>\n
earlier occasion when SARFAESI proceedings were pursued.<\/p>\n
Ext.P2 is the judgment of this court in WP(C).No. 10922\/10.<\/p>\n
W.P.(C).27232\/10-D             -2-\n<\/p>\n
Referring to a Division Bench judgment of this court in Business<\/p>\n
India Builders & Developers Ltd. Vs. Union Bank of India<\/p>\n
(2007(2) KLT 237) it is observed that the tenant of a building,<\/p>\n
which is proceeded under the SARFAESI Act, has no right over<\/p>\n
and above that of the landlord as to continue in occupation from<\/p>\n
not being evicted under the proceedings. Therefore the writ<\/p>\n
petition was dismissed reserving liberty of the petitioner if any,<\/p>\n
to pursue actions to acquire rights and interests over the<\/p>\n
property, if he is interested.\n<\/p>\n
      3.    The above judgment was pronounced during April<\/p>\n
2010.    It is stated that the Bank had thereafter notified the<\/p>\n
property for sale through Ext.P3 notice. It is the contention of<\/p>\n
the petitioner that, pursuant to the sale notified, the petitioner<\/p>\n
had participated in the proceedings and submitted tender which<\/p>\n
was refused to be accepted by the officials of the Bank. Ext.P5 is<\/p>\n
the copy of the tender alleged to have been submitted by the<\/p>\n
petitioner and Ext.P6 is the copy of Demand Draft alleged to<\/p>\n
have been drawn for the purpose of remitting EMD. On rejection<\/p>\n
of the tender submitted by the petitioner and conduct of sale, the<\/p>\n
petitioner submitted Ext.P7 representation requesting the<\/p>\n
authority to conduct re-sale. Since the said representation was<\/p>\n
W.P.(C).27232\/10-D              -3-\n<\/p>\n
not considered, the present writ petition is filed seeking to quash<\/p>\n
the sale conducted pursuant to Ext.P3 & P4 notices. It is also<\/p>\n
contended that since proceedings for winding up of the 3rd<\/p>\n
respondent company is pending before the High Court of<\/p>\n
Bombay, the sale proceedings conducted by the respondents 1 &<\/p>\n
2, without obtaining sanction from that court is not sustainable.<\/p>\n
Petitioner inter alia prayed for a direction to restrain the<\/p>\n
respondents 1 and 2 from dispossessing the petitioner from the<\/p>\n
building in question.\n<\/p>\n
      4.    In the counter affidavit filed on behalf of respondents<\/p>\n
1 and 2 it is mentioned that the petitioner had not taken any<\/p>\n
action pursuant to Ext.P2 judgment which had attained finality<\/p>\n
between parties inter se. It is further stated that the allegation<\/p>\n
regarding submission of tender documents before the time<\/p>\n
stipulated for sale, is absolutely untrue.      The petitioner had<\/p>\n
never submitted any tender before 11 A.M. on 13.8.2010, as<\/p>\n
alleged.     It is pointed out that in Ext.R1(a) representation<\/p>\n
submitted by the petitioner on 28.8.2010, it is admitted that he<\/p>\n
had reached the Bank before “11.30 A.M” with the tender<\/p>\n
documents and the Demand Draft whereas the time fixed was<\/p>\n
11.00 A.M. It is mentioned that the writ petition was filed much<\/p>\n
W.P.(C).27232\/10-D              -4-\n<\/p>\n
after the date of the sale and after the sale was confirmed. It is<\/p>\n
mentioned that the bid submitted by the 4th respondent was<\/p>\n
accepted and the sale was confirmed in favour of the 4th<\/p>\n
respondent on 24.8.2010 and he was issued with a sale<\/p>\n
certificate on 15.9.2010, on deposit of the entire amount. It is<\/p>\n
further stated that the sale was confirmed in favour of the 4th<\/p>\n
respondent for a sum of Rs.1,37,51,000\/-, whereas the tender<\/p>\n
alleged to have been submitted by the petitioner is only for an<\/p>\n
amount of Rs.13,72,000\/-. It is contended by the respondents 1<\/p>\n
and 2 that the filing of the writ petition is a sheer abuse of the<\/p>\n
process of the court and it was filed only as a part of the<\/p>\n
repeated attempts from the side of the petitioner to hold of the<\/p>\n
proceedings initiated for realising amounts due from the 3rd<\/p>\n
respondent.\n<\/p>\n
      5.    The 4th respondent had filed a counter affidavit in<\/p>\n
which similar contentions as that of respondents 1 and 2 are<\/p>\n
raised. It is contended that the challenge raised against the<\/p>\n
proceedings is covered against the petitioner in view of various<\/p>\n
pronouncements of this court, as reported in 2007(2) KLT 237<\/p>\n
and 2005(4) KLT SN 96 (Page 70).            It is alleged that the<\/p>\n
attempt of the petitioner is in conjunction and collusion with the<\/p>\n
W.P.(C).27232\/10-D              -5-\n<\/p>\n
3rd respondent in an attempt to resist the proceedings initiated<\/p>\n
by the Bank and that the petitioner is estopped from raising any<\/p>\n
such contention in view of Ext.P2 judgment.\n<\/p>\n
      6.    While considering the issues involved, it is noticed<\/p>\n
that the petitioner had challenged the proceedings based on the<\/p>\n
very same claim in Ext.P2 writ petition. The judgment in Ext.P2<\/p>\n
deciding the issue had attained finality between parties inter se.<\/p>\n
Further, the law settled as on today is to the effect that the<\/p>\n
tenant of a building is not having any right to object the<\/p>\n
proceedings initiated under SARFAESI Act. However, learned<\/p>\n
counsel for petitioner pointed out that the question is now<\/p>\n
pending consideration before the Full Bench. It is brought to my<\/p>\n
notice that after confirmation of the sale, now respondents 1 and<\/p>\n
2 had approached the Chief Judicial Magistrate Court invoking<\/p>\n
Section 14(1) of the Act for getting dispossession of the<\/p>\n
petitioner from the building. If the petitioner has got any case<\/p>\n
that he is entitled to continue in possession by virtue of any<\/p>\n
rights as a tenant, it is left open to him to agitate the matter<\/p>\n
before the Chief Judicial Magistrate.\n<\/p>\n
      7.    With respect to challenge against the sale, I do not<\/p>\n
find any material discrepancy to interfere with, invoking powers<\/p>\n
W.P.(C).27232\/10-D              -6-\n<\/p>\n
under Article 226 of the Constitution of India. If the petitioner<\/p>\n
claims that the sale was vitiated due to any material irregularity,<\/p>\n
remedy of the petitioner as a person who claims to have<\/p>\n
participated in the sale, is to approach the appropriate forum<\/p>\n
under the statute. It is pertinent to note that even though the<\/p>\n
petitioner was given liberty to work out his remedies to protect<\/p>\n
his interests, through the earlier judgment, nothing is brought<\/p>\n
out to show that he had made any attempt in that line. As stated<\/p>\n
above, Ext.P2 being a judgment which had attained finality<\/p>\n
between the parties inter se, I am not at all inclined for any<\/p>\n
interference on the very same issue.       Accordingly the writ<\/p>\n
petition deserves no merit and the same is dismissed.<\/p>\n
      However, it is made clear that dismissal of this writ petition<\/p>\n
will not cause any prejudice to the petitioner to invoke statutory<\/p>\n
remedies if any available to him under law.\n<\/p>\n<\/p>\n
                           C.K.ABDUL REHIM, JUDGE.\n<\/p>\n
okb<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court K.Abdul Salam vs Authorised Officer And Chief … on 11 October, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 27232 of 2010(D) 1. K.ABDUL SALAM,PROPRIETOR,CROWN TEX, … Petitioner Vs 1. AUTHORISED OFFICER AND CHIEF MANAGER, … Respondent 2. CHIEF MANAGER,INDIAN BANK,HEAD OFFICE, 3. M\/S.EAST WEST TRAVEL AND TRADE LINKS 4. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-119965","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nK.Abdul Salam vs Authorised Officer And Chief ... on 11 October, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/k-abdul-salam-vs-authorised-officer-and-chief-on-11-october-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"K.Abdul Salam vs Authorised Officer And Chief ... on 11 October, 2010 - 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