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TMI Blog2006 (6) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... nished Flat No. 307, Prameela Towers, Kakaguda, Secunderabad from Siri Constructions vide registered sale-deed dated 25-11-2000. For the purpose of purchasing the flat, he applied to the Bank for sanction of a term loan of Rs. 6,00,000, which was duly sanctioned. It has been further averred that even though the terms of agreement entered with the builder postulated disbursement of loan by the Bank in instalments subject to the stage-wise completion of construction work, the Bank authorities released the entire loan amount ignoring the fact that the builder had not taken steps to complete the construction work. Still further, it has been averred that even though notice issued under section 13(2) of the Securitisation and Reconstruction of Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground of availability of an effective alternative remedy to the petitioner, which he has failed to avail. The question whether the High Court should entertain a petition under article 226 of the Constitution despite the fact that an effective alternative remedy is available to the petitioner has been considered by the Supreme Court in a large number of cases. In A.V. Venkateswaran, Collector of Customs v. Ramchand Sobhraj Wadhwani AIR 1961 SC 1506 the Constitutional Bench of the Supreme Court while reiterating the rule that the party who applies for the issue of a high prerogative writ should, before he approaches the court, exhaust the other remedies open to him under the law is not one which bars the jurisdiction of the High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with rigidity in every case which comes up before the court." (p. 1506) 6. In Thansingh Nathmal v. Superintendent of Taxes AIR 1964 SC 1419 another Constitutional Bench of the Supreme Court considered the question relating to exercise of discretion by the High Court in entertaining a writ petition despite the availability of alternative remedy and held : "The jurisdiction of the High Court under article 226 of the Constitution is couched in wide terms and the exercise thereof is not subject to any restrictions except the territorial restrictions which are expressly provided in the articles. But the exercise of the jurisdiction is discretionary: it is not exercised merely because it is lawful to do so. The very amplitude of the jurisdictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en an alternative and equally efficacious remedy is open to a litigant he should be required to pursue that remedy and not to invoke the special jurisdiction of the High Court to issue a prerogative writ. It is true that the existence of a statutory remedy does not affect the jurisdiction of the High Court to issue a writ. But, the existence of an adequate legal remedy is a thing to be taken into consideration in the matter of granting writs and where such a remedy exists it will be a sound exercise of discretion to refuse to interfere in a writ petition, unless, there are good grounds therefor. But it should be remembered that the rule of exhaustion of statutory remedies before a writ is granted is a rule of self-imposed limitation, a rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailability of an alternative remedy is a rule of discretion and not one of compulsion. In an appropriate case, in spite of availability of the alternative remedy, the High Court may still exercise its writ jurisdiction in at least three contingencies : (i) where the writ petition seeks enforcement of any of the fundamental rights; (ii) where there is failure of principles of natural justice; or (iii) where the orders or proceedings are wholly without jurisdiction or the wires of an Act is challenged. [See Whirlpool Corpn. v. Registrar of Trade Marks [1998] 8 SCC 1]. The present case attracts applicability of the first two contingencies. Moreover, as noted, the petitioners dealership, which is their bread and butter, came to be terminated fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted for the purpose of expeditious recovery of the dues of Banks, other financial institutions and secured creditors and sections 17 and 18 provide for filing of application and appeal by the aggrieved person, the remedy available to the petitioner under section 18 of the Act must be treated as an effective alternative remedy and we do not see any reason for making a departure from the settled rule that the High Court will not entertain a petition under article 226 of the Constitution, if an effective alternative remedy is available to the petitioner.
12. For the reasons stated above, the writ petition is dismissed leaving the petitioner free to avail the remedy of appeal in terms of section 18 of the Act. X X X X Extracts X X X X X X X X Extracts X X X X
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