TMI Blog2018 (8) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of land in the revenue records as agricultural is not dispositive or conclusive of the question whether the SARFAESI Act does or does not apply. Whether a parcel of land is agricultural must be deduced as a matter of fact from the nature of the land, the use to which it was being put on the date of the creation of the security interest and the purpose for which it was set apart. In the absence of a specific finding, it would be appropriate and proper to set aside the judgment of the High Court and to remit the proceedings for being considered afresh - matter restored. - Civil Appeal No(s).6641/2018 With [ITEM NO.1504.1 - C.A. No. 6645/2018 (XII)] - - - Dated:- 20-7-2018 - MR. DIPAK MISRA, .CJI, MR. A M KHANWILKAR AND Dr. D Y CHAND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to commence business. The account became a non-performing asset. In 1995, the Bank filed a suit for recovery. It was transferred to the Debt Recovery Tribunal (DRT-III) at Chennai and renumbered as T.A. No. 93 of 2007. On 11 June 2010, DRT-III allowed the claim of the Bank in the amount of ₹ 31,00,238/- with interest at 9 per cent per annum. A recovery certificate was issued on 10 February 2011 in the amount of ₹ 74,31,233.14/-. On 2 August 2011, the Bank issued a demand notice under Section 13(2) for ₹ 85,41,662/-. Overruling an objection that the property is agricultural in nature, it took possession on 31 October 2011. The Bank issued a sale notice on 2 April 2012. The sale notice was challenged in Original Suit No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AESI Act. It has been urged that it is a settled position that the mere classification of a property in the revenue records as agricultural does not render it agricultural land. Whether a particular parcel of land is agricultural is a question of fact. In the present case, it has been submitted that no agricultural activity was taking place on the date of the creation of the mortgage and it was classified as dry land in the land acquisition proceedings. The auction purchaser has while supporting the submissions of the Bank urged that plots have been carved out of the land and sold. 6 On the other hand, reliance was placed by learned Counsel appearing on behalf of the first respondent on a recent judgment of this Court in ITC Limited v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or credit provided to enable the borrower to acquire the tangible asset; or (ii) such right, title or interest in any intangible asset or assignment or licence of such intangible asset which secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or the obligation incurred or any credit provided to enable the borrower to acquire the intangible asset or licence of intangible asset;'. 8 The expression security interest , both before and after the amendment, excludes what is specified in Section 31. Clause (i) of Section 31 stipulates that the provisions of the Act will not be applicable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Court further held that: 57 having regard to the character of the land and the purpose for which it is set apart, we are of the view that the land in question is not an agricultural land. The High Court misdirected itself in holding that the land was an agricultural land merely because it stood as such in the revenue entries, even though the application made for such conversation lies pending till date. 9 The classification of land in the revenue records as agricultural is not dispositive or conclusive of the question whether the SARFAESI Act does or does not apply. Whether a parcel of land is agricultural must be deduced as a matter of fact from the nature of the land, the use to which it was being put on the date of the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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