Appeal No. R-158 of 2012. Case: State Bank of India Vs Mayur Gramudyog Vikas Sansthan and Ors.. Allahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals)
| Case Number | Appeal No. R-158 of 2012 |
| Counsel | For Appellant: Mr. P.K. Tripathi, Advocate and For Respondents: Mr. V.D. Chauhan and Mr. Izaz Ahmed, Advocates |
| Judges | R.K. Gupta, J. (Chairperson) |
| Issue | Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 - Sections 19, 19(25); Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Sections 13(2), 13(4), 13(8), 17, 18 |
| Citation | IV (2013) BC 85 |
| Judgement Date | March 13, 2013 |
| Court | Allahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals) |
Judgment:
R.K. Gupta, J. (Chairperson)
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They are heard. The present appeal is preferred under Section 18 of the SARFAESI Act, 2002 challenging the order passed by the DRT, Lucknow on 24th August, 2012 in S.A. No. 90/2011. By this order the Tribunal has allowed the application preferred by the respondent Nos. 1 and 2 and directed for redemption of the property by the borrowers. The relevant facts for adjudication of the present case are that the respondent Nos. 1 and 2 took the financial assistance by way of Cash Credit Limit, Term Loan and Housing Loan. Since there was default in repayment of the loan by the respondent Nos. 1 and 2, therefore, the appellant-Bank issued the notice under Section 13(2) of the SARFAESI Act, 2002. The said notice was issued on 20th April, 2007. In the said notice, it was the claim of the Bank that the amount due is for a sum of Rs. 7,13,060.19 along with the interest. The same is also clear from the Schedule-A, which was annexed to the notice under Section 13(2), filed before this Tribunal and is place at Page No. 26 of the paper book of the appellant. The amount as such was not paid by the respondent Nos. 1 and 2, therefore, the Bank proceeded to take action provided under Section 13(4) of the SARFAESI Act, 2002. The Property as such was put to auction by publishing the notice, which is placed on record at page No. 42 of the paper book. In the said auction notice also, the amount of Rs. 7,13,060.19 was shown to be the dues recoverable by the Bank from the respondent Nos. 1 and 2 and the reserve price of the property was fixed for a sum of Rs. 10.71 lacs.
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The respondent Nos. 1 and 2 earlier filed a writ petition before the Hon'ble High Court of Judicature at Allahabad, which was registered as Writ-C No. 6280/2011. The said writ petition was dismissed by the Hon'ble High Court by passing an order on 15th February, 2011 on the ground of availability of alternative remedy.
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The respondent Nos. 1 and 2 thereafter preferred the securitisation application under Section 17 of the SARFAESI Act, 2002 to the Tribunal and the said application was filed on 22nd February, 2011.
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Thereafter, the respondent Nos. 1 and 2 filed another writ petition before the Hon'ble High Court of Judicature at Allahabad, which was registered as Writ C. No. 65189/2011. The said writ petition was also dismissed by the Hon'ble High Court by passing an order on 3rd January, 2012. The said writ petition was dismissed by the Hon'ble High Court on the ground that the petitioners had already availed the alternative remedy by filing the securitisation application before the Tribunal, therefore, the Hon'ble High Court has refused to entertain the said writ petition. The securitisation application which was preferred by the respondent Nos. 1 and 2 on 22nd February, 2011 was already pending and in the said application the respondent Nos. 1 and 2 filed an application for amendment which was allowed.
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Before filing of the application for amendment, the respondent Nos. 1 and 2 submitted an application for redemption of the property before the Tribunal and the said application was submitted on 6th January, 2012. It was the claim of the respondents that on 5th January, 2012 they had already deposited the Bank draft for a sum of Rs. 10,00,510/- with the appellant-Bank and the appellant-Bank refused to accept the same.
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The Tribunal while adjudicating the case finally accepted the application for redemption of the property so preferred by the respondent Nos. 1 and 2 by passing the impugned order. Against the order passed by the Tribunal, the auction purchaser also preferred an appeal to this Tribunal which was registered as Appeal Sr. No. 9/13. The said Appeal was dismissed by this Tribunal by passing an order on 28th January, 2013 on the ground that this Tribunal has no power to condone the delay in an appeal preferred before this Tribunal under Section 18 of the SARFAESI Act, 2002 and as a consequence of the same, the appellant-Bank preferred the present appeal against the impugned order passed by the Tribunal on 24th August, 2012, by which the redemption was permitted.
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This is to be seen that along with the Appeal, the appellant-Bank has filed the details of appropriation of auction money of Rs. 14.50 lacs. The property was put to auction on 4th January, 2012 according to the sale proclamation and there is no dispute that within the stipulated period the auction purchaser deposited the full amount as provided under Rule 9(4) of the Security Interest (Enforcement) Rules, 2002. The full amount as such was deposited by the auction purchaser by 12th January, 2012 and thus, the auction purchasers complied with the conditions.
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This is also to be seen that the Bank intimated the auction purchaser vide their letter dated 4th January, 2012 that the highest bid received from the auction purchaser towards the property in question has been accepted and the auction purchaser was further directed to deposit 75% of...
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