STATE BANK OF TRAVANCORE Vs. EMPLOYEES PROVIDENT FUND ORGANISATION; ASSISTANT PROVIDENT FUND COMMISSIONER & RECOVERY OFFICER; KONCHERRY COIR FACTORIES; MUHAMMA COIR FACTORY WORKERS UNION AND ORS

JUDGEMENT

(1.) The petitioner is the bank with whom the 3rd respondent has mortgaged an extent of 15.561 cents of property belonging to the 3rd respondent establishment.

(2.) The bank initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as 'SARFAESI Act'), by issuing notice under Section 13(2) of the SARFAESI Act on 01.03.2008, which included the aforesaid 15.561 cents also. Pursuant to the same, since the liability was not settled, the bank took possession of the property under Section 13(4) of the SARFAESI Act as per Ext.P1 proceedings dated 20.01.2009.

(3.) In the meantime, a writ petition was filed by the Union as WP(C) No.13702/2010, wherein the petitioner bank as well as the EPF organization were parties. The complaint of the Union was that no action was taken by the EPF organization for recovering the employees' contribution from the 3rd respondent. While the writ petition was pending, a proclamation was published by the recovery officer attached to the EPF organization as Ext.P2. According to the petitioner bank, it came to know about the proclamation on 22.10.2011. The sale was posted on 24.10.2011. The petitioner had submitted Ext.P3 representation to the EPF Organization narrating the factual aspects involved in the matter. Still they proceeded with the settlement of proclamation. The petitioner approached this Court by filing the writ petition and this Court, by interim order dated 24.10.2011, ordered as under: