MURALEEDHARAN Vs. AUTHORISED OFFICER,KARANATAKA BANK LTD

JUDGEMENT

(1.) Petitioners have approached this Court, being aggrieved by the fact that a Securitisation Application filed by the petitioners before the Debts Recovery Tribunal, challenging the proceedings initiated by the respondent bank under the provisions of the SARFAESI Act, has not been numbered by the registry on the ground that the petitioners have not remitted sufficient court fees.

(2.) Learned counsel appearing for the petitioners would submit that fee on Securitisation Applications is to be paid in terms of Rule 13 of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as "the Rules"). It is submitted that the Rules contemplate an application under Sec. 17 of the SARFAESI Act by the borrower (including the mortgagor, co-obligant etc.,) and any other person. It is submitted that a reading of Rule 13(2) of the Rules indicate that the fee to be paid by an aggrieved person, other than the borrower, is that under Rule 13(2)1(c) and (d) of the Rules and not under Rule 13(2)1(a) and (b) of the Rules. It is submitted that the failure to consider the case of the petitioners as one falling under Rule 13(2)1(c) and (d) of the Rules, is illegal and unsustainable. It is submitted that the petitioners are complete strangers to the transaction and the petitioners are neither mortgagors nor co-obligants in respect of loans extended to respondent Nos.3 to 5.

(3.) Learned counsel appearing for the respondent bank vehemently opposes the grant of any relief. He submits that the documents available with the respondent bank indicate that the petitioners are co-obligants as well as mortgagors in respect of the loan availed by respondent Nos.3 to 5. It is submitted that the petitioners have affixed their signatures on the loan documents and have also deposited a title deeds in respect of their properties for the purposes of creating a mortgage by deposit of title deeds. It is submitted that in such situation, any Securitisation Application filed by the petitioners under Sec. 17 of the SARFAESI Act can be entertained only if court fees is paid in terms of Rule 13(2)1(a) and (b) of the Rules and not in terms of Rule 13(2)1(c) and (d) of the Rules.