Mr. Justice Sujit Narayan Prasad

Can issue of valuation of the mortgaged property be adjudicated by the High Court in writ jurisdiction under Article 226? | Is due to the pre-condition provided under Section 30 of the Recovery of Debts and Bankruptcy Act, 1993 the writ petition to be entertained? – Paritran Medical College and Hospital Vs. Punjab National Bank and Ors. – Jharkhand High Court

Hon’ble Jharkhand High Court held that:

(i) The power which is to be exercised under Article 226 of the Constitution of India is a self-imposed restriction upon the High Court but that principle has been segregated by the Hon’ble Apex Court in the matter of recovery of public money from the borrowers who took loan/advance from the Bank and other financial institutions.
(ii) The issue of valuation of the mortgaged property is the question which cannot be adjudicated by the High Court in the summary proceeding like the writ jurisdiction under Article 226 of the Constitution of India.
(iii) If alternative remedy is there and the process as per the stipulation provided in the relevant statutory provision is mandatorily to be followed otherwise there will be no meaning of statutory provision.
(iv) The same is based upon the principle that a thing is to be done strictly in accordance with the statutory provision and there cannot be any deviation from the statutory command. It is the settled position in law that a thing is required to be done strictly in pursuance to the provisions of law, if any deviation, then ultimately the provision as contained under the statute will have no effect.

Can issue of valuation of the mortgaged property be adjudicated by the High Court in writ jurisdiction under Article 226? | Is due to the pre-condition provided under Section 30 of the Recovery of Debts and Bankruptcy Act, 1993 the writ petition to be entertained? – Paritran Medical College and Hospital Vs. Punjab National Bank and Ors. – Jharkhand High Court Read Post »

In case if sale consideration has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under Rule 9 of the Security Interest (Enforcement) Rules, 2002 – Raj Kumari Kanoi Vs. Chairman-cum-Managing Director, Allahabad Bank and Ors. – Jharkhand High Court

Hon’ble High Court observed that it is the specific case of the Bank that as yet the physical possession of the property is not with the Bank and at present the total bank dues outstanding in the said NPA account is amounting to Rs.10,68,964/-. This Court has posed a pin pointed question upon the Bank that when there is a law to be followed then why the Bank has not followed the Rule which mandates that in case if the amount has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under sub-rule (3) of Rule 9 of the Rules, 2002 coupled with the provision made under sub-rule (5) thereof. This Court, therefore, wants some answer from the higher authority at least of the rank of General Manager of the concerned Bank that what action is being taken against the erring officials after conducting an enquiry by casting liability so that said instance may not be repeated in future and the very object and aim of the Act, 2002 be achieved in strict sense.

In case if sale consideration has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under Rule 9 of the Security Interest (Enforcement) Rules, 2002 – Raj Kumari Kanoi Vs. Chairman-cum-Managing Director, Allahabad Bank and Ors. – Jharkhand High Court Read Post »

The Vegetable Growers Cooperative Society Ltd., Vs. The Managing Director, the Jharkhand State Adivasi Cooperative Marketing Federation Ltd. – Jharkhand High Court

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The Vegetable Growers Cooperative Society Ltd., Vs. The Managing Director, the Jharkhand State Adivasi Cooperative Marketing Federation Ltd. – Jharkhand High Court Read Post »

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