NDLI: K. Virupaksha & Anr. Vs. The State of Karnataka & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Securitisation and Reconstruction Financial Assets
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Indian Penal Code (45 of 1860) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) Code of Criminal Procedure, 1973 (2 of 1974)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 – ss.13, 14, 17, 32 – Respondent No.2 was sanctioned credit facilities amounting to Rs.2.68 crores by Bank – Property measuring 3 acres 2 Guntas was offered as security and a charge was created (Secured Asset) – As per the Bank, respondent no.2 did not repay the loan and his account was classified as Non-Performing Asset (NPA) – Ultimately, the Bank took possession of the secured asset – Auction notice issued – Challenged by respondent no.2 – Rejected by High Court – Respondent no.2 filed application u/s.17(1) – Dismissed by Debts Recovery Tribunal (DRT) for delay – Appellate Tribunal (DRAT) dismissed appeal– Respondent no.2 filed complaint u/s.200, CrPC against appellants who were working as Deputy General Managers in the Bank (accused no.1) alleging connivance with auction purchaser which caused wrongful loss to him – FIR registered – Appellants filed petition u/s.482, CrPC – Dismissed – Held: SARFAESI Act is a complete code in itself which provides the procedure to be followed by secured creditor and also the remedy to the aggrieved parties including borrower – In such circumstance, if there is any discrepancy in the manner of classifying the account as NPA or in the manner in which the property was valued/auctioned, the DRT is vested with power to set aside such auction at the stage after the secured creditor invokes power u/s.13 – Though in the instant case the application filed by Complainant before DRT and the appeal before DRAT were dismissed, the remedy ought to have been availed diligently – In that direction the further remedy by approaching the High Court to assail the order of DRT & DRAT is also available in appropriate cases – Instead, after dismissal of application before DRT, the impugned complaint was filed as an intimidatory tactic and an afterthought which is an abuse of the process of law – Criminal proceeding not sustainable in a matter of present nature – Complaint and the order passed therein as also the FIR insofar as the appellants are concerned stand quashed – Complainant at liberty to avail his remedies if he assails the order passed by DRT & DRAT – Code of Criminal Procedure, 1973 – ss. 200, 482 – Penal Code, 1860 – ss.511, 109, 34, 120-B, 406, 409, 420, 405, 417 & 426 – Security Interest (Enforcement) Rules, 2002.
Judge	Hon'ble Mr. Justice Ajjikuttira Somaiah Bopanna
Neutral Citation	2020 INSC 261
Petitioner	K. Virupaksha & Anr.
Respondent	The State Of Karnataka & Anr.
SCR	[2020] 2 S.C.R. 1020
Judgement Date	2020-03-03
Case Number	377

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K. Virupaksha & Anr. Vs. The State of Karnataka & Anr.

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