K.P.MOUTHEESWARAN Vs. DISTRICT COLLECTOR ERODE DISTRICT

JUDGEMENT

(1.) The common question involved in these writ petitions viz., W.P.Nos.4087 and 26721 of 2019, is as to whether the District Magistrate/District Collector while deciding application under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act"?) can hold an enquiry in the issue whether the land in question, which is claimed to be security interest by the lender bank, is an agricultural land or not, so as to be exempted and therefore outside the ambit and scope of the provisions of SARFAESI Act by virtue of Section 31(i) of the Act.

(2.) The learned District Collector in the present case has held in the impugned order on the application filed by the applicant Bank of India that the land in question belonging to the defaulting borrower M/s.Mira Exports, No.214/4, Nanthavana Thottam, Kovai Pirivu, Alukkuli (P.O), Gobichettipalayam viz., Survey No.214/4 (Old Survey No.289) of Alukuli Village, Gopi Taluk, Erode District, admeasuring an extent of 3.24 acres, was an agricultural land and therefore, no action could be taken against the said property under the SARFAESI Act.

(3.) Aggrieved by the said order of the District Collector, Erode, the Bank of India has filed W.P.No.26721 of 2019, whereas the auction purchasers have filed W.P.No.4087 of 2019. The auction purchasers viz., K.P.Moutheeswaran and K.K.Palanisamy, came into picture because the Bank, in the meanwhile, put to auction the said security interest of the industry of the defaulting borrower M/s.Mira Exports set up on the said land under the provisions of SARFAESI Act and the auction purchasers gave the successful bid in the process and they have filed the present W.P.No.4087 of 2019 to protect their interest and secure possession of the secured assets viz., the said land and industry sold by the Bank.