Allahabad High Court
M/S Dashrath Devi Foundation ... vs Punjab National Bank Sagar Market ... on 19 March, 2021
Bench: Devendra Kumar Upadhyaya, Manish Kumar
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
?Court No. - 2
Case :- MISC. BENCH No. - 7662 of 2021
Petitioner :- M/S Dashrath Devi Foundation Trust Thru President Maheshwar
Respondent :- Punjab National Bank Sagar Market Faizabad Thru B.M. & Anr.
Counsel for Petitioner :- Pankaj Gupta
Counsel for Respondent :- Mayank Pathak
Hon'ble Devendra Kumar Upadhyaya,J.
Hon'ble Manish Kumar,J.
Heard learned counsel for petitioner and Sri Mayank Pathak, learned counsel representing the respondent-Punjab National Bank.
By mean of this petition, a challenge has been made to the auction sale notice dated 22.02.2021 issued under Rule 8 (6) and Rule 9 of Security Interest (Enforcement) Rules 2002 whereby the property of the petitioner is scheduled to be auctioned on 25.03.2021.
The core contention of learned counsel for petitioner challenging the auction notice is that in terms of judgment rendered by a Division Bench of this Court on 29.02.2012 in Civil Misc Writ Petition No.8377 of 2012; M/s Shyam Ice & Cold Storage (P) Ltd and others vs. M/s Syndicate Bank and another, the respondent-Bank could not have taken recourse to the proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 during pendency of the proceedings for One Time Settlement.
On the other hand, learned counsel representing the Bank has produced before us an order dated 27.01.2021 passed by the competent officer of the Bank whereby the application/prayer made by the petitioner for One Time Settlement in respect of two loan accounts, one in the name of M/s Dashrath Devi Foundation Trust and the other in the name of M/s. Maheshwar Dutt Mishra, has been rejected. A copy of the said order dated 27.01.2021 has been served upon the petitioner as well during the course of hearing of this case.
There is no denial of the fact that the proceedings for recovery of the loan amount have been initiated under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and accordingly appropriate remedy to the petitioner in such a situation is available by way of moving an application under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 before the Debts Recovery Tribunal.
In the aforesaid view of the matter, we are not inclined to interfere in this petition, which is hereby disposed of with liberty to the petitioner to approach the Debts Recovery Tribunal by way of moving an application/petition under Section 17 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Once any such application/petition under Section 17 of the said Act is moved, the Debts Recovery Tribunal shall proceed to decide the same in accordance with law.
It is further provided that in case the petitioner approaches the Debts Recovery Tribunal by way of appropriate application/petition under Section 17 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and also moves an application seeking grant of interim relief, the same shall also be considered by the Debts Recovery Tribunal as expeditiously as possible, in any case before the date of auction notified in the notice dated 22.02.2021. It is further provided that in case the petitioner approaches the Debts Recovery Tribunal, he may do so by 22.03.2021 and thereafter the matter for grant of interim relief shall be heard, as observed above, by the Debts Recovery Tribunal.
The petitioner before filing the application/petition under Section 17 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 shall serve a copy thereof upon any panel lawyer/standing counsel who may be available in the Debts Recovery Tribunal.
Let a certified copy of this order be furnished to learned counsel for parties on payment of usual charges today itself.
Order Date :- 19.3.2021
Renu/-
