V SHANMUGAM Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) THE appellant has challenged order dated 19th Dec., 2007, passed by learned single Judge in W.P. No.19445/07. By the said order, learned single Judge, while held that there is substantial compliance of provision u/s 13 (3-A) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as 'SARFAESI Act'), dismissed the writ petition.

(2.) THE main plea taken in the appeal, as argued by the learned senior counsel for the appellant, is that the respondent, Union Bank of India (hereinafter referred to as the 'Bank'), having not taken any decision u/s 13 (3-A) of the SARFAESI Act within one week, had no jurisdiction to take steps u/s 13 (4) of the said Act.

(3.) LEARNED counsel appearing on behalf of the appellant submitted that the time frame of one week as prescribed u/s 13 (3-A) being mandatory, on the basis of subsequent decision it cannot be held to be substantial compliance of Section 13 (3-A) and, thereby, learned single Judge failed to notice the same. He placed reliance on a Division Bench decision of this Court in I.D.B.I. Ltd. - Vs " Kamaldeep Synthetics Ltd. reported in 2007 (2) CTC 397, wherein the Court made the following observation :-