S.P.GANESAN Vs. REPCO BANK

JUDGEMENT

(1.) (Order of the Court was made by The Hon'ble Chief Justice) The short question that falls for consideration in this matter is whether the REPCO Bank is authorised to invoke the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(2.) The writ petitioner has obtained credit facilities from the respondent REPCO Bank. Upon the perceived failure on the part of the writ petitioner to repay the dues within time, a notice has been issued under Sec. 13(2) of the Act of 2002 on April 20, 2017. A further notice has been issued under Sec. 13(12) of the Act of 2002 on November 15, 2019 for taking possession of the secured assets. Since a possession notice has been issued, it is evident that the respondent has purported to take steps under Sec. 13(4) of the Act of 2002. In an ordinary situation where the respondent may be regarded as a secured creditor within the meaning of that expression used in the Act of 2002, the writ petitioner in the present case would have had an opportunity to approach the appropriate Debts Recovery Tribunal under Sec. 17 of the Act of 2002.

(3.) The writ petitioner, however, contends that the respondent is not a bank at all and, thus, cannot be regarded as a secured creditor within the meaning of the relevant expression in the Act of 2002. The writ petitioner asserts that all steps taken by the respondent under the Act of 2002 are void and completely without jurisdiction.