The Petition found to be non-maintainable and shall be appealed under Section 17 of the Sarfaesi Act 2002: High Court Of Patna

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.197021 Charter Awadh Educational Trust At and P.O. Belawaiyan P.S. Dinara District Rohatash 802213 through its Managing Trustee Sri Satyendra Sri Satyendra Kumar Son of Sri Ram Awadh Singh Managing Trustee Charter Awadh Educational Trust resident of At Prastampur P.O. Karhausi P.S. Dinar District Rohatash 802218 ... Petitioner s State Bank of India constituted under State Bank of India Act 1955 carrying on the business of Banking having its corporate centre at Madame Cama Road Nariman Point Mumbai through its Chairman The Chairman State Bank of India At Madame Cama Road Nariman Point Mumbai The State Bank of India Stressed Assets Management Branch Judges Court Road Anta Ghat Patna 800001 through its Divisional The Divisional General Manager State Bank of India Stressed Assets Management Branch Judges Court Road Anta Ghat Patna The State Bank of India Stressed Assets Resolution Branch 2nd Floor Main Branch Building West Gandhi Maidan Patna 800001 through its Assistant General Manager The Assistant General Manager State Bank of India Stressed Assets Resolution Branch 2nd Floor Main Branch Building West Gandhi Maidan Patna 800001 through its Divisional General Manager The Authorized Officer State Bank of India Stressed Assets Resolution Branch 2nd Floor Main Branch Building West Gandhi Maidan Patna 800001 The Senior Branch Manager State Bank of India Bikramganj Branch At and P.O. and P.S. Bikranganj District Rohtas ... Respondent s For the Petitioner s Mr. M.N. Parvat Sr. Advocate For the Respondent s Mr.Praveen Prabhakar Advocate Mr. Sanjay Singh Thakur Advocate Mr. Parijat Saurav Advocate CORAM: HONOURABLE MR. JUSTICE RAJAN GUPTA and HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH Patna High Court CWJC No.197021 dt.08 12 2021 Per: HONOURABLE MR. JUSTICE RAJAN GUPTA Date : 08 12 2021 The present writ petition has been filed for quashing the Inventory dated 05.01.000 prepared by the Authorized Officer by which possession of the school building has been taken under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 hereinafter referred to as the ‘Sarfaesi Act 2002’ The brief facts of the case according to the petitioners are that the petitioner no. 1 is a trust formed for the purposes of setting up of a school and the petitioner no. 2 is the Managing Trustee of the petitioner no. 1. The petitioners had taken loan from the respondent State Bank of India Bikramganj Branch to the tune of Rs. 150.00 lakhs whereafter the petitioners had constructed the school building. In the month of March 2016 the petitioners had again applied for enhancement of loan and a further loan of a sum of Rs. three crores were sanctioned by the respondent Bank. Subsequently on account of non payment of the installments of the loan in question the loan account of the petitioners were declared N.P.A. The bank had then taken action for recovery of the entire loan amount and had filed O.A No. 295 of 2018 before the Debt Recovery Tribunal Patna under Section 19 of the Recovery of Debt and Bankruptcy Act Patna High Court CWJC No.197021 dt.08 12 2021 1993 and the case was decreed by the learned Tribunal vide order dated 02.02.2019 against the petitioners whereafter R.P No. 1619 was registered for recovery of decreed amount in terms of the said judgment. The learned senior counsel for the petitioner has submitted that the authorities of the Bank has suddenly taken the possession of the building in question on 05.08.2021 and locked the entire premises purportedly under section 13(4) of the ‘Sarfaesi Act 2002’. It is submitted that the petitioners are ready to liquidate the due amount in installments and enter into an amicable settlement with the respondent Bank hence the case of the petitioners be considered sympathetically in view of the fact that upon closure of the school in question the future prospect of the children would suffer. We had put a query to the learned senior counsel for the petitioners as to whether the petitioners are ready to pay even the outstanding amount of loan which is due and payable according to them i.e. a sum of Rs. 3.50 crores to which the learned senior counsel for the petitioner has failed to give any satisfactory reply Per contra the learned counsel for the respondent Bank has raised a preliminary issue with regard to maintainability of Patna High Court CWJC No.197021 dt.08 12 2021 the present writ petition inasmuch as the petitioners have a remedy of filing an application under section 17(1) of the ‘Sarfaesi Act 2002’ against the action taken by the respondent Bank under Section 13(4) of the ‘Sarfaesi Act 2002’ We have heard the learned counsel for the parties and perused the materials on record and find that the petitioners have failed to show their bona fide inasmuch as they are not ready to deposit any substantial amount out of the outstanding loan amount due and payable even according to them. We further find that the present writ petition is not maintainable and the appropriate remedy for the petitioner is to file appropriate appeal under Section 17 of the ‘Sarfaesi Act 2002’. In this regard we would refer to the judgment rendered by the Hon’ble Apex Court in the case of United Bank of India vs Satyawati Tondon reported in 9 SCC 620and the one reported in3 SCC 85(Mohit Kumar Shah J Mohit Kumar Shah J: 

Summary: The petitioners have failed to show their bona fide since they are not ready to deposit any substantial amount out of the outstanding loan amount, due and payable, even according to them. The Court further found that the present writ petition is not maintainable and the appropriate remedy for the petitioner is to file an appropriate appeal under Section 17 of the ‘Sarfaesi Act, 2002’. The Hon’ble High Court of Patna before Justice Mr. Ahsanuddin Amanullah in the matter Charter Awadh Educational Trust and others v. State Bank of India and Ors[Civil Writ Jurisdiction Case No.19703 of 2021]. Current facts of the case were that the ownership of the school building has been taken under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter alluded to as the ‘Sarfaesi Act, 2002’). The applicants are that candidate no. 1 is a trust framed for the reasons for setting up of a school and the candidate no. 2 is the Managing Trustee of the candidate no. 1. The candidates had taken credit from the respondent State Bank of India, Bikramganj Branch to the tune of Rs. 150.00 lakhs whereafter the solicitors had built the school building. In the long stretch of March 2016, the candidates had again applied for the upgrade of credit and a further advance of an amount of Rs. 3 crores were endorsed by the respondent Bank. Therefore, by non-installment of the portions of the credit being referred to, the advance record of the candidates was pronounced N.P.A. The bank had then made a move for recuperation of the whole credit sum. The learned senior advice for the candidate has presented that the specialists of the Bank have unexpectedly taken ownership of the structure is referred to. It is presented that the applicants are prepared to exchange the due sum in portions and go into a genial settlement with the respondent Bank, consequently, the instance of the solicitors be viewed as thoughtfully considering the way the endless supply of the school being referred to, the future possibility of the youngsters would endure. The Hon’ble High Court Of Patna held,” Having regard to the facts and circumstances of the case and considering the provisions of the ‘Sarfaesi Act, 2002’ and the aforesaid judicial pronouncements of the Hon’ble Apex Court, we do not find any merit in the present writ petition, hence the same stands dismissed, however, without any order as to costs.”