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TMI Blog2011 (3) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the debt. In the case at hand the 'debt' is only the decree debt. Hence, it should be reckoned from the date of the decree. period of limitation prescribed under section 17(1) stands expired, he is not in a position to challenge the proceedings initiated by resorting to the statutory remedy. writ petition is dismissed - W.P.(C) NO. 5490 OF 2011(I) - - - Dated:- 23-3-2011 - C.K. ABDUL REHIM, J. K.A. Salil Narayanan for the Petitioner. S. Easwaran for the Respondent. JUDGMENT 1. Proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this writ petition. Consequent to default committed in rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2( h )( a ) of the SARFAESI Act rule with section 2( g ) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDB Act) it includes amounts covered under a decree. Therefore, the 'debt' which is sought to be recovered through the SARFAESI proceedings is the 'decree debt' and the period of limitation starts only from the date of the decree. Computed on that basis the notice under section 13(2) was issued well within the period of limitation stipulated under Article 136 of the Limitation Act. Hence it is not barred under section 36, is the contention. 4. Learned counsel for the petitioner, per contra, raised contentions based on the provisions of section 13(2), to the effect that, for initiating a proceeding u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eans any debt or receivables. Since the decree is also a 'debt', there is no doubt that it is a 'financial asset'. The claim with respect to the 'financial asset' is made on the basis of notice under section 13(2). So the limitation can only be reckoned from the date on which that 'financial asset' became due, which in turn can only be the date of the debt. In the case at hand the 'debt' is only the decree debt. Hence, it should be reckoned from the date of the decree. Therefore from a combined reading of section 36 of the SARFAESI Act and the definition clauses of the terms 'debt' and 'financial asset' along with the relevant Article of the Limitation Act prescribing the period of limitation for realization of a decree, it can safely be co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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