{"id":130602,"date":"2008-11-25T00:00:00","date_gmt":"2008-11-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/smt-susheela-vs-karnataka-state-financial-on-25-november-2008"},"modified":"2017-11-07T05:30:05","modified_gmt":"2017-11-07T00:00:05","slug":"smt-susheela-vs-karnataka-state-financial-on-25-november-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/smt-susheela-vs-karnataka-state-financial-on-25-november-2008","title":{"rendered":"Smt Susheela vs Karnataka State Financial … on 25 November, 2008"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Smt Susheela vs Karnataka State Financial … on 25 November, 2008<\/div>\n
Author: Ram Mohan Reddy<\/div>\n
1\n\nIN THE HIGH COURT OF KARNATAKA, BANGA1.0R'*E\n\nDATED THIS THE 25TH DAY OF NovEMaE1\u00a72fz3t)\u00e9\u00a7%%%:'%.i '2.\n\nBEFORE\n\nTHE HOWBLE MR. JUSTICE wxivz 4MQifIA\u00a7:\"  \nwrerr PE'FIT!Or\u20ac NO. 6674 V.}__\n\nAND :\n\nKARNATAKA STATE FINANCIALCQRPQRATIONAA \nN0 1\/ 1 THIMMAIAH ROAD --_ . \"  \nNEAR CANTONMENT RA1i_._wA*1, :s'm'1fIe_N,,  .\nBANGALORE, BRANCH,Q_FF!CE_ AT DEVARM\nURS COMME1?2(11AL_ CQ'MPLEX,4NF$H_RU ROAD\n\nSEEN;\u20ac\\PPA.A   'A3*.CiRI(3L__E: 1 I\nSHIMO(}A.,_BY IT'SV\"BRA]_'{C1I{ MANAGER\n\n \n\n  _  RESPONDENT\n(13y5r.:,I_s. r<i's:'\u00abf{(_:,' 'sID.)"- \n\nV.  mls WRIT 'PETITION IS FILED UNDER ARTICLES 226\n\n '  22'? OPVTHE CONSFITUTION OF INDIA PRAYING TO\n QfUAS\u00a7'}*TfiE"T~T_ENDER CUM NEGOTIATION NOTIFICATION\n\nPU'\u00a3\u00a5\u00a3LISI~iEI)  VIJAYA KARNATAKA KANNADA DAILY\nNNWSRAEER' (PAGE No.9) DT.7.5.2006 AS PER ANN-A.\n\nIITHIS PETITION, COMING ON FOR PRELIMINARY\n\n = I HEARING IN 'B' GROUP, THIS DAY THE COURT MADE THE\n\n  SQEILOWING:\n\nORDER\n<\/pre>\n
The petitioners having defaulted in the matter of
\nrepayment of dams to the respondent — Karnataka State<\/p>\n
Financial Corporatkm, the respondent invoked Section 29 of<\/p>\n
M<\/p>\n
 _ .,’.”9E–‘ifITICN\u00a3R9;O: I “N <\/p>\n
the State Financial Corporation Act, 1951 (for short \ufb01at’) to<\/p>\n
recover the monies due by issuing a noti\ufb01cafzioiz-.._4\u00bbtitd.<\/p>\n
07.05.2006, for salt of the properties  <\/p>\n
bormwcrs, by way of tender-cum\u00abI_n;Agqtiatif;t1;’    = <\/p>\n
which is assailed in this writ pc\ufb01ti\u00e9n.  . T1 ‘<\/p>\n
2. It is admitted that thef\u00e9spontient  V<\/p>\n
loan for Rs.15,60,00\u20ac},I._-   loan of<\/p>\n
Rs.6,00,000\/\u00ab with a -31′ eight years, in<\/p>\n
\u00a3avour’ofP\u00bb\ufb01j partnership \ufb02an of which
\nthe   who, by way of security,
\nmortgaggnhe1\u00a7ag\u00a7::;\u00a21\u00a7i..’nghts of the land and building of<\/p>\n
M; “-E3r,:,_._v_;:_’:r13;s, while that 5*” petitioner o\ufb01emd his<\/p>\n
 hc11se–,_  at Lakshmipura Extension, Kallahalli,<\/p>\n
H Shimoga City, as a collateral security. it is<\/p>\n
 that the petitioners could not pro\ufb01tably<\/p>\n
  “m’.’i1_i.’scvvihc Hotel and Resort Imlustxy as a result of which<\/p>\n
 su\ufb01cmd heavy Bosses and turned dcfaultcrs. it appears<\/p>\n
‘ V’ ”  the mspondent \ufb01led Miscelhncous Peiitinn No.1\/2005<\/p>\n
befon: the District Judge, Shimoga invoking Sections 31(1)[a)
\nand 31[1)(aa) of the Act to recover Rs.2?,62,632\/ – by
\narxaigning the petitianers as party-reapondcnts therein. It is<\/p>\n
the assertion of th:: petitioners that during the pcndency of<\/p>\n
36K<\/p>\n
5<\/span><\/p>\n
under Section 29 of the Act dtning the pendeneyVV’oi1″e.the<\/p>\n
proceedings  under Section 31 of the    _<\/p>\n
3. The petition is opposed by””\ufb011ing\ufb01o.o  511 VA<\/p>\n
undated Statement of objections  ,<\/p>\n
contending that the   3′:11(‘i)’  of’ V L’<\/p>\n
the Act is to enforce the the. surety-whiile Section
\n29 is to recover   the amounts due.\n<\/p>\n
According    of proceedings
\nunder  from the borrowers
\nare dist\ufb01not’ initiation of pmceedm gs
\nunda\u00a7.%%se\u00a2tg\u00a7\ufb01’V\u00bb:{;\u00a7%1;om enforce liability of the suxety.
\nWhat   the by invoking Section 29 is the<\/p>\n
leazig\ufb02hoid atidteftee-‘titold rights over the property hearing<\/p>\n
,A I-2″-beIong’ng to the \ufb01nn. Reliance is placed upon<\/p>\n
  tie?}_isiot\u00a7””‘.of a Division Bench of this Court in<\/p>\n
 sonvsms PVT. I..’l’D., vs. Karo! wherein it<\/p>\n
 to is_ he1ti that proceedings under Section 29 and 31(1)(aa) axe<\/p>\n
‘ Vetrtigotj improper. in addition, it is stated that pursuant to the<\/p>\n
 tzoti\ufb01cation Annexuze-‘A’ dated 7-542006, no action has<\/p>\n
been taken to hold the sale of the property.<\/p>\n
M<\/p>\n
1 AIR 2003 KAI? 221<\/p>\n
6<\/span><\/p>\n
4. I-Iavi\ufb01g heard the kaanaed counsel for the parties,<\/p>\n
perused the pleadings and examined the <\/p>\n
A11ncxu1t\u00bb”A”, in my opinion, in the   _<\/p>\n
action the KSFC in invoking Section 29 of    = .. <\/p>\n
properties of the \ufb01rm, the dcfauilggr,  <\/p>\n
either illegal or arbitrary so  c\u00e9iitvfor    ,<\/p>\n
not the case of the petitione:;VL”\ufb01.i;\u00a3at _ tho”   involtm g
\nSec\ufb01on 29 of the    Vos by the
\nrespondent — C-o133o1ab’;ox;v;T’ the matter, the<\/p>\n
noti\ufb01cation Am~.,\u00a5,Lo~-i.,E,;gA\u00bb _;;-,a.n’:nc.\u00a3::t\u00a7’\u00e9’*sa1d. to be illegal. Writ<\/p>\n
pctiticega is  gaccomingty, rejected. It is
\nopen  u the  approach the KSFC, with<\/p>\n
nec<:s2.s;a13r    the baiancc amounts due, and<\/p>\n
   done  \u00e9"iovrt111'ght from today, the respondent is<\/p>\n
   the same, and pass appropriate orders<\/p>\n
    Sd\/_
\nJudge<\/p>\n
%% "  'Ks<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Smt Susheela vs Karnataka State Financial … on 25 November, 2008 Author: Ram Mohan Reddy 1 IN THE HIGH COURT OF KARNATAKA, BANGA1.0R’*E DATED THIS THE 25TH DAY OF NovEMaE1\u00a72fz3t)\u00e9\u00a7%%%:’%.i ‘2. BEFORE THE HOWBLE MR. JUSTICE wxivz 4MQifIA\u00a7:” wrerr PE’FIT!Or\u20ac NO. 6674 V.}__ AND : KARNATAKA STATE FINANCIALCQRPQRATIONAA N0 1\/ 1 THIMMAIAH […]<\/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":[8,20],"tags":[],"class_list":["post-130602","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nSmt Susheela vs Karnataka State Financial ... on 25 November, 2008 - 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\/smt-susheela-vs-karnataka-state-financial-on-25-november-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smt Susheela vs Karnataka State Financial ... on 25 November, 2008 - 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