CENTRAL BANK OF INDIA Vs. RAM CHANDRA SAHOO

JUDGEMENT

(1.) The Central Bank of India represented by the Branch Manager of its Puri Branch and the Assistant General Manager-cum-Authorised Officer of its Regional Office at Bhubaneswar have filed this writ petition against the interim order dated 12.10.2010 passed by the District Consumer Disputes Redressal Forum, Puri, in C.D. Case No. 157/2010 directing them not to sell out the pledged property till final disposal of the said C.D. Case, which was mortgaged against the loan.

(2.) Opposite party No. 1 -Ram Chandra Sahoo availed a Cash Credit loan amounting to Rs. 8,70,000/- from the Puri Branch of the Bank and his wife (O.P.2) stood as the guarantor to such loan. When O.P.1 defaulted to repay the loan amount, the Bank issued notice to both O. Ps. 1 & 2 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, "Securitisation Act"). Thereafter, the Authorised Officer of the Bank issued the possession notice under Section 13(4) of the Securitisation Act (Annexure-4). Challenging the possession notice, O.P.1 filed a complaint case being C.D. Case No. 157/2010 before the District Consumer Disputes Redressal Forum, Puri, which passed the impugned interim order dated 12.10.2010 in Annexure-1.

(3.) This Court by its order dated 18.1.2011 while issuing notice to the opposite parties by special messenger stayed the operation of the impugned order dated 12.10.2010, which has been challenged in this case on the ground that opposite party No. 1 being the borrower and since the Bank has invoked the power under the provision of the Securitisation Act, the District Forum has no jurisdiction to entertain the application of the complainant leave apart passing an order of injunction in contravention of the provisions made in the Securitisation Act.