Cause Title : Mr. Latif Yusuf Manikkoth vs Bank of Baroda, Writ Petition (L) No. 9116 Of 2023, Bombay High Court
Date of Judgment/Order : 20/07/2023
Corum : G. S. Kulkarni & Rajesh S. Patil, JJ.
Citied:
- M/s. Innoventive Industries Ltd. Vs. ICICI Bank1 (Para No. 11)
- Authorized Officer, State Bank of Travancore Vs. Mathew K.C.2 (Para Nos. 4, 11)
- Phoenix ARC Private Ltd. Vs. Vishwa Bharati Vidhya Mandir3 (Para Nos. 7, 8, 9 & 13.2)
- Surinder Kumar Verma Vs. Union of India4 (Para No. 7)
- State of Bank India Vs. Ramakrishnan5 (Para Nos. 5.8)
- Kotak Mahindra Bank Vs. Girnar Corrugators Pvt. Ltd. 6 (Para Nos. 5, 6, 7, 8, 9, 10, 11, 12)
Background
The Petitioner is personal guarantor against loan sanctioned by the Bank in favour of One Alaska Creations Pvt. Ltd. The Respondent No. 4 was the supplier of footwear to the borrower. When the borrower failed to pay their dues, the Respondent No. 4 filed an application under Section 9 of Insolvency and Bankruptcy Code which was admitted and moratorium was declared. Meanwhile as the account of the borrower had turned NPA, the Bank filed a Securitisation Application before the Chief Metropolitan Magistrate. The Respondent No.5/Chief Metropolitan Magistrate passed an order appointing Respondent No.6, the Assistant Registrar, Chief Metropolitan Magistrate as Court Commissioner to take possession of the Secured Asset.
The Borrower and the Petitioner filed series of applications against the actions taken by the Bank and finally this writ petition. The primary objection filed by the petitioner was that the borrower being an MSME the relationship between the Borrower and the Bank would be governed by the provisions of MSMED Act being the later law and the last legislation, would override the earlier law in respect of adjudicating upon the relationship between the Borrower and the Bank and that the Bank cannot be proceed before multiple forums based on the very same cause of action between the very same parties in terms of Sections 34, 38 and 41 of the Specific Relief Act, 1963.
Judgment
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