The Division Bench of the Supreme Court, comprising Justices D Y Chandrachud and Justice Suryakant in the case of Chandan Kumar v. State of Bihar & Ors has stayed an e-auction in Bihar after noting that Debt Recovery Tribunal is not functional in the State of Bihar.
Submission of the Petitioner
The Counsel on the behalf of the petitioner has submitted that the Division Bench of the High Court had given the option to the petitioner that if the settlement does not fructify, the petitioner would be at liberty to avail of the remedy before the Debt Recovery Tribunal. Counsel submits that the Debt Recovery Tribunal is not functional in the State of Bihar, as a result of which the petitioner has been left without any remedy.
Reasoning and Decision of the Court
The Court considered the facts of the case and instructed the Respondent to stay the auction process till the next date of hearing and directed the petitioner to deposit an amount of ₹1 crore with the SBI Stressed Assets Management Branch (respondent) before February 14, 2022, and a further amount of ₹75 lakh on or before March 14, 2022.
The Court made emphasis on the fact that the Debt Recovery Tribunal is not functional in the State of Bihar on which the Court passed a conditional relief to the petitioner by ordering the Respondent to stay the e-auction till the next date of listing.
The Court posted the matter on 21/03/2022 for next hearing.
Case Details
Case: - Petition(s) for Special Leave to Appeal (C) No.1730/2022
Petitioner: - Chandan Kumar
Respondent: - State of Bihar
Counsel for Petitioner: - Mr. Shivam Singh, Adv.
Judge: Justices D Y Chandrachud and Justice Suryakant
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