Dismissal of Writ Petition: Legal Notice Valid, NPA Classification Correct

The court dismissed the writ petition, affirming the legality and jurisdiction of the notice under section 13(2) of the Act, the correct classification of the SOD facility as an NPA, and ruled that a writ petition against a private bank was not maintainable. The petitioner was advised to pursue an appeal under section 17 of the Act before the appropriate authority.

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Issues: Whether a writ petition under Article 226 of the Constitution of India is maintainable against a private bank in respect of action taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and whether the borrower should be relegated to the statutory remedy under section 17 of that Act.

Analysis: The challenge arose from measures initiated under sections 13(2) and 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The statutory scheme provides a post-measure remedy before the appellate authority under section 17, and the Court found that disputed questions relating to non-performing asset classification and the bank's action were matters better examined under that remedy. The Court further held that a private bank registered under the Companies Act, 1956 and carrying on banking business is not a creation of statute, is not established by statute, and does not become a State or instrumentality of State merely because it is regulated by banking law. In the absence of a public duty or deep and pervasive governmental control, mandamus under Article 226 was held to be unavailable.

Conclusion: The writ petition was not maintainable, and the petitioner was left to pursue the statutory appeal under section 17 of the Act.

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