Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Dowry Death Cruelty and Abetment of Suicide |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | SECURITISATION AND RECONSTRUCTION OFFINANCIAL ASSETS AND ENFORCEMENT OFC SECURITY INTEREST ACT, 2002:ss. 2(zc) and 2(zf) - Security interest - Onginal title deedsof properties deposited with bank creating equitable mortgageagainst loan - Held: Security interest, within the meaning ofs.2(zf) has been created in respect of the properties inquestion which are secured assets within the meaning ofs.2(zc), in favour of the secured creditor (the bank) within themeaning of s.2(zd) -- On failure to re-pay, the bank can alwaysenforce its security interest over the secured assets.ss.13(4), 17 and 34 - Title deeds deposited with bank assecurity against loan - Borrower failed to repay the loan - Banksold the property after publishing the auction notice - Suit byplaintiff's claiming the property as HUF property - Held: Incase the borrower fails to discharge his /iab1/ity, the bank canF take the "measures" provided in s.13(4) for recovery of theloan amount - s.17confers a right of appeal to any person,aggrieved by any of the "measures" referred to in sub-s. (4)of s.13 taken by the secured creditor- Expression 'any person'used in s. 17 is of wide import and takes witbjn its fold theG borrower, the guarantor as also the plaintiffs in the-suit as well- Thus, irrespective of the question whether the civil suit ismaintainable or not under the Act itself, a remedy is providedto such persons so that they can invoke the provisions of s. 17,in case the bank (secured creditor) adopts any measure including the sale of secured assets, on which plaintiffs claiminterest. s. 34 rlw s. 35 - Civil court not to have jurisdiction - Held:Civil court jurisdiction is completely barred, as regards the"measure" taken by a secured creditor under sub-s. (4) of s.13 Bagainst which an aggrieved person has a right of appealbefore ORT or Appellate Tribunal to determine as to whetherthere has been any illegality in the "measures" taken - Bank,in the instant case, has proceeded only against securedassets of borrowers - In the circumstances, High Court was in cerror in holding that only civil court has jurisdiction to examineas to whether the "measures" taken by secured creditor undersub-s. (4) of s.13 were legal or not - Judgment of High Courtis set aside - Code of Civil Procedure, 1908 - s.9. |
Judge | Hon'ble Mr. Justice A.K. Patnaik |
Neutral Citation | 2013 INSC 736 |
Petitioner | Rajeev Kumar |
Respondent | State Of Haryana |
SCR | [2013] 12 S.C.R. 251 |
Judgement Date | 2013-10-31 |
Case Number | 967 |
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