Madras High Court Dismisses Writ Petition Challenging Bank's NPA Proceedings Due to Alternative Remedy Before DRT. Petitioner directed to approach Debts Recovery Tribunal under Article 226 of Constitution of India.

High Court: Madras High Court
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Case Note & Summary

The petitioner, R. Mayilan, filed a writ petition under Article 226 of the Constitution of India before the Madurai Bench of the Madras High Court, challenging an order dated 21.12.2024 passed by the first respondent, the Authorized Officer of City Union Bank Limited, Kumbakonam, through proceeding C.O/REC.NPA/2024-2025. The petitioner sought to quash the said order and to direct the first respondent to issue fresh proceedings against respondents 3 and 4, S. Thangabalu and B. Shanthi. The court, comprising Justice M.S. Ramesh and Dr. Justice A.D. Maria Clete, heard the matter at the admission stage with consent of both sides. The court observed that an effective remedy lies before the Debts Recovery Tribunal (DRT) and therefore, invoking the writ jurisdiction under Article 226 was not permissible. Consequently, the writ petition was dismissed, granting liberty to the petitioner to work out his remedies in accordance with law. No order as to costs was made, and connected miscellaneous petitions were closed.

Headnote

A) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Article 226 of the Constitution of India - The petitioner challenged an order of the Authorized Officer of City Union Bank declaring the account as NPA. The court held that since an effective remedy lies before the Debts Recovery Tribunal, invoking writ jurisdiction is not permissible. The writ petition was dismissed with liberty to approach the DRT. (Para 3)

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Issue of Consideration

Whether a writ petition under Article 226 of the Constitution of India is maintainable when an effective alternative remedy lies before the Debts Recovery Tribunal.

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Final Decision

The writ petition is dismissed with liberty to the petitioner to work out his remedies in accordance with law. No order as to costs. Connected miscellaneous petitions are closed.

Law Points

  • Alternative remedy
  • Writ jurisdiction
  • Debts Recovery Tribunal
  • Article 226
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Case Details

2025 LawText (MAD) (01) 254

W.P.(MD)No.1109 of 2025 and W.M.P.(MD)Nos.751 & 752 of 2025

2025-01-10

M.S. Ramesh, A.D. Maria Clete

For Petitioner: Mr.M.R.Sreenivasan; For Respondents 1 & 2: Mr.N.Dilip Kumar, Standing Counsel

R. Mayilan

1. The Authorized Officer, City Union Bank Limited, Kumbakonam; 2. The Branch Manager, City Union Bank, Thuvakudi; 3. S. Thangabalu; 4. B. Shanthi

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an order of the Authorized Officer of City Union Bank declaring the account as NPA.

Remedy Sought

Petitioner sought to quash the impugned order dated 21.12.2024 and direct the first respondent to issue fresh proceedings against respondents 3 and 4.

Filing Reason

Petitioner challenged the order passed by the first respondent through proceeding C.O/REC.NPA/2024-2025 dated 21.12.2024.

Issues

Whether a writ petition under Article 226 is maintainable when an effective alternative remedy lies before the Debts Recovery Tribunal.

Ratio Decidendi

Since an effective remedy lies before the Debts Recovery Tribunal, invoking the jurisdiction of this Court under Article 226 of the Constitution of India is not permissible.

Judgment Excerpts

Since an effective remedy lies before the Debts Recovery Tribunal, invoking the jurisdiction of this Court under Article 226 of the Constitution of India would not be permissible and hence, the Writ Petition stands dismissed, with liberty to the petitioner to work out his remedies in accordance with law.

Procedural History

The writ petition was filed on an unspecified date and taken up for final disposal at the stage of admission by consent of both sides. The court dismissed the petition on 10.01.2025.

Acts & Sections

  • Constitution of India: Article 226
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High Court Madras High Court Dismisses Writ Petition Challenging Bank's NPA Proceedings Due to Alternative Remedy Before DRT. Petitioner directed to approach Debts Recovery Tribunal under Article 226 of Constitution of India.
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