ANIRUDDH SINGH vs AUTHORIZED OFFICER, ICICI BANK LTD
MP 5324 of 2023
Facts:
1.Petitioner on 16.09.2022 filed an application (S.A. No.806/2022) u/S.17(1) of SARFAESI Act assailing demand notice, possession notice and auction notice issued in respect of the secured assets in question. Along with the aforesaid S.A. No.806/2022, petitioner had moved an application u/S 5 of Limitation Act seeking condonation of delay in preferring the same. Delay sought to be condoned was of 46 days.
2.Petition is filed challenging the final order dated 02.09.2023 (Annexure-P/9) passed in S.A. No.806/2022 by Debt Recovery Tribunal, Jabalpur (for brevity “DRT”) dismissing the said SA filed u/S.17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity “SARFAESI Act”) for being barred by limitation, having been filed beyond the period of 45 days stipulated in Section 17(1) of SARFAESI Act.
Issue: Whether the benefit of provisions of Limitation Act, in particular Section 5, are available in respect of an application preferred u/S.17(1) of the SARFAESI Act or not?
Decision: Hon’ble HC allowed the petition and set aside the order.
Rationale:
1.The Hon’ble Court noted that the issue of applicability of provisions of Limitation Act to an application u/S.17 of SARFAESI Act were not under consideration of the Apex Court in the case of Bank of Baroda & Another Vs. M/s Parasaadilal Tursiram Sheetgrah Pvt. Ltd. and Or which is being relied by the DRT.
2.Hon’ble court noted that the Limitation Act of 1963 is a complete Code providing for limitation of suits and other proceedings and for all purposes connected therewith. The SARFAESI Act is also a complete Code to regulate securitization and reconstruction of financial assets and enforcement of security interest and to provide for central data base of security interest created on property rights and for matters connected therewith or incidental thereto.
3.It noted that Section 17 of SARFAESI Act does not confer DRT with discretion to extend the period of limitation of 45 days. Noticeably, Section 17 or any other provision of SARFAESI Act does not expressly exclude the operation of beneficial provisions under the Limitation Act. Section 29(2) inter alia stipulates that if the special law does not expressly exclude the application of Sections 4 to 24 of Limitation Act, then these provisions of Limitation Act shall apply qua all causes raised under the Special Law.
Order:
