K.Ganga Raju v. The State Bank of India, Kakinada Branch

Order: (Per Hon’ble Sri Justice Goda Raghuram) Heard Sri Raghavender Reddy, learned counsel for the petitioner and Sri Deepak Bhattacharjee, learned counsel for the respondents. The order of the 2nd respondent dated 24-2-2010 directing the 3rd respondent to take possession of the specified property of one Smt Ankam Surya Kumari w/o Nageswara Rao, D.No. 86-8-8, Tilak Road, Rajahmundry and hand it over to the 1st respondent-Bank-the secured creditor, in purported exercise of the power under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act’) is called in question in this writ petition. The 2nd respondent passed the impugned order on a petition by the secured creditor. It was pleaded in the said application that the borrower Smt Surya Kumari had defaulted on a loan account and therefore, proceedings were initiated under the provisions of the Act.

The order passed by the authority under Section 14 of the Act is an order in aid of the substantive right of the Bank to take possession of the secured assets under Section 13 (4) (a) of the Act. The secured creditor is at liberty under the provisions of Section 13 (4)(a) of the Act to take possession of the secured assets itself where the secured creditor considers it expedient to seek sovereign aid in the matter of taking possession by an appropriate application/a request in writing to the authorities enumerated in Section 14 of the Act. Any order passed under Section 14 of the Act is thus an order in aid of the substantive right of the secured creditor under Section 13 (4) of the Act. In respect of any proceedings under Section 13 (4) of the Act, any person aggrieved has an appellate remedy under Section 17 of the Act before the Debts Recovery Tribunal having jurisdiction in the matter. The petitioner, the father of the borrower Smt Ankam Surya Kumari pleads that he had gifted the schedule property to his daughter by way of a registered deed on 15-4-2004 but is continuing in the premises under a lease agreement dated 1-9-2004 entered into with his daughter; that the lease was renewed up to 30-8-2013; that his daughter died on 27-9-2006; and that he is willing to vacate the house property (the secured asset) as and when the sale of the secured asset is finalised and is willing to participate in the auction if and when conducted by the secured creditor.