NEELAM Vs. STATE BANK OF INDIA, COMMERCIAL BRANCH

JUDGEMENT

(1.) THIS writ petition, under Article 226 of the Constitution of India, is filed to declare the action of the respondent -Bank in auctioning the property viz., House No. 9 -1 -44/2/1 -A and 9 -1 -44/2/5 known as Pratap Theatre, admeasuring 5382.13 square yards or 4500 square meters built up area 18706 square feet in Survey Nos. 140 and 141 (old 144/1) of TS No. 35, situated at Langer House, Hyderabad, as arbitrary and illegal and consequently, direct the respondent -Bank to stop the auction to be held on 28.8.2014. Case of the petitioner is that her husband, who is one of the borrowers, died on 10.6.2013. The aforesaid property was owned jointly by her husband and his brother. After death of her husband, the share in the said property devolved upon her, her minor daughter and son. Without issuing fresh notice under sub -section (4) of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'SARFAESI Act'), the respondent -Bank is proceeding further. Hence, the writ petition.

(2.) LEARNED Counsel for the petitioner contended that in view of decision of the Honourable Madras High Court, immediately after the death of original borrower, proceedings initiated under Section 13(4) of the SARFAESI Act, would automatically stand abated and hence, he prays to admit the writ petition.

(3.) ORIGINALLY the ground urged in the writ petition is whether the secured creditor can proceed further i.e., immediately after issuance of notice under sub -section (4) of Section 13 of the SARFAESI Act in case the borrower died. Learned Counsel for the petitioner placed reliance on an unreported decision in S. Suhaina Banu and others v. Indian Bank, Arm Branch and others, WP No. 27230 of 2009, wherein it was held thus (Para 6):