ANILKUMAR Vs. CATHOLIC SYRIAN BANK LTD.

JUDGEMENT

(1.) Should all the items of property offered as security interest be put to sale under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('the SARFAESI Act' for short) even if a sale of few of the items would be sufficient to satisfy the debt due to the Bank ? Item Nos. 1 and 2 property offered as security interest belongs to the partnership firm and item Nos. 3 and 4 property offered as security interest to the Bank are the personal property of the partners. The petitioner who is the Managing Partner of the firm contends that only such of the items of property as are necessary to satisfy the debt need be sold by the Bank under the SARFAESI Act. The Bank on the other hand points out that such principles under O. XXI R. 64 of the Code of Civil Procedure, 1908 cannot be imported to the sale under the SARFAESI Act.

(2.) I heard Mr. R. Harishankar, Advocate on behalf of the petitioner and Mr. Jacob Sebastian, Advocate on behalf of the Bank.

(3.) Item No. 1 property is one allotted to the partnership firm by the Industries Department of the State under executive orders issued for allotment of land ear marked in industrial area. The land belongs to the Industries Department who have even a right to resume possession of the same in case the allottee commits default in running the industrial unit as per the terms of the grant. The petitioner has no alienable interest over the land and the Bank may at best have a right to proceed against the structures and machineries therein in enforcement of the security interest. Therefore it is not possible to direct item No. 1 property to be sold first before selling Item Nos. 2 to 4 property under the SARFAESI Act by the authorised officer of the Bank as contended by the petitioner.