Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India 1950: |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Constitution of India, 1950:Articles 226 and 136 - Discretionary and extra-ordinary jurisdiction and equitable remedy - Invoking of - Held: it is of utmost necessity that when a party approaches High Court, he must place all facts before the Court without any reservation - If there is suppression of material facts on the part of the applicant or twisted facts have been placed before the Court, the writ Court may refuse to entertain the petition and dismiss it without entering into merits of the matter - Writ petitioner having suppressed material facts, is not entitled to ask for extra-ordinary remedy under Article 226 from High Court as also equitable remedy from Supreme Court under Article 136 - Equity.Securitization, Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002:ss. 13(2) and (4)(a) - Enforcement of security interest - Notice u/s 13(2) issued to borrower-company - Company neither made the payment nor did it give any representation-Bank exercising power u/s 13(4)(a) - Writ petition before High Court by borrower stating that representation against notice u/s 13(2) was made but not considered - High Court accepting the stand of Bank that plea of representation was an afterthought - Besides, borrower suppressed material facts and created third party interest in property mortgaged to Bank - Writ petition dismissed in limine - Held: A party whose hands are soiled cannot hold writ of Court - High Court was not in error in refusing relief to borrower - Even on merits, no case made out for interference with action taken by Bank or order passed by High Court - Constitution of India, 1950 - Articles 226 and 136.The appellant-company obtained a loan of Rs.85 lakhs from the respondent-Bank in the year 1992 on mortgage of its land and building, creating security interest in favour of the Bank. After some time the appellant defaulted in depositing instalments of repayment of the loan. On 19.10.2004, the Bank served a notice dated 16.10.2004 on the appellant-Company under sub-section (2) of Section 13 of the Securitization, Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 stating therein that the appellant failed to pay a sum of Rs.87,64,549.42 p. The appellant was called upon to deposit the required amount with interest within 60 days failing which the Bank would exercise the power under sub-section (4) of Section 13 of the Act. On 9.3.2005 the Bank issued a notice to take over possession of the residential house of the Director of the company. The Company filed a writ petition before the High Court which dismissed the same in limine.In the instant appeal filed by the Company it was contended for the appellant that against the notice dated 16.10.2004, the Company made a representation dated 20.10.2004 and it was incumbent on the Bank to consider the same to extend an opportunity to the appellant to enable it to pay off the amount and, in case of rejection of the representation, to inform the appellant about such decision by recording reasons and, as the Bank failed to do so, its action was unlawful and against the provisions of the Act as also in violation of the law laid down in Mardia Chemicals Case*. It was also submitted that the writ petition raised several questions which were required to be dealt with in a detailed judgment, but the High Court summarily dismissed the writ petition.For the respondent-Bank it was contended that there was suppress.ion of material facts by the Company and it did not approach the Court with clean hands; that no representation dated 20.10.2004, said to have been made by the Company was received by the Bank and the plea of representation was an after-thought, which was raised only with a view to take benefit of observations in Mardia Chemicals Case* It was also submitted that apart from failure to pay regular instalments, the company even did not comply with the terms of the interim order passed by the Supreme Court; and, therefore, it was not a fit case to exercise discretionary jurisdiction in favour of the Company. |
Judge | Hon'ble Mr. Justice C.K. Thakker |
Neutral Citation | 2007 INSC 845 |
Petitioner | M/s Prestige Lights Ltd. |
Respondent | State Bank Of India |
SCR | [2007] 9 S.C.R. 112 |
Judgement Date | 2007-08-20 |
Case Number | 3827 |
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