IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE WRIT PETITION NO.54226 OF 2018 (GM-RES) Between:
1. M/s.Aroha Exim Pvt Limited., Having registered office at Door No.213 and 214, 1st Floor, Mahendra Arcade, K.R.Rao Road, Mangalore, Pin – 575003 Represented by its Director Mr.Ullal Aditya Nayak.
2. Mr.Ullal Aditya Nayak, S/o late Ullal Sadananda Nayak, Residing at D-31-2638, “Ananda Sudha”, Karangalpady, Mangalore, Pin – 573003.
3. Mrs.Ullal Sudha Nayak, W/o Late Ullal Sadananda Nayak, Residing at D-31-2638, “Ananda Sudha”, Karangalpady, Mangalore, Pin – 573003.
(By Sri.Varadaraj S.Iyengar, Advocate) And:
The Authorized Officer, Bank of Baroda, … Petitioners Mangalore Main Branch, Ground Floor, Mangala Complex, Opposite Hotel Roopa, Balmatta Road, Mangalore, Karnataka, Pin – 575001.
…Respondent This Writ Petition is filed under Articles 226 and 227 of the Constitution of India, praying to in view of what has been stated in the pleadings of the Petitioner Company through their director Sri.Ullal Adithya Nayak, they have established that the notice issued by the Authorised Officer of the Respondent Bank is against RBI directives, Banking Codes and Standards as announced by Banking Codes and Standards Board of India and adopted by Bank of Baroda, Government of India policies and tenets of SARFAESI Act, violating the system and procedures of banking and prudential norms as announced by RBI and hence the classification of accounts as NPA and the actions initiated by the Authorised Officer and the notice served by the Authorised Officer under Section 13(2) of SARFAESI Act on 20.08.2018 Annexure-L is null and void and etc.
This Writ Petition coming on for Orders, this day, the Court made the following:-
ORDER Sri.Varadaraj S. Iyengar, learned counsel for the petitioners.
Taking into account the order which this Court proposes to pass, it is not necessary to issue notice to the respondent.
2. In this petition, the petitioners inter alia have assailed the validity of the Demand Notice dated 20.08.2018 issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‘the Act’ for short).
3. This writ petition is pending before this Court since 2018, in which no interim order has been passed.
4. In view of the decision of this Court in the order dated 30.01.2019 passed in W.P.No.6594/2018 and for the reasons assigned therein, the remedy available for the petitioners is to file an application under Section 17 of the Act.
5. Accordingly, petition is disposed of with liberty to the petitioners that in case they file an application before the Debts Recovery Tribunal within a period of three weeks from the date of receipt of certified copy of the order passed today, they shall be entitled to the benefit of principles contained under Section 14 of the Limitation Act, 1963.
6. It is made clear that this Court has not expressed any opinion on the merits of the case.
Accordingly, the writ petition is disposed of.
Sd/- JUDGE dn/-