Navata Eco Bricks vs Punjab National Bank
2022 Latest Caselaw 3005 AP

Citation : 2022 Latest Caselaw 3005 AP
Judgement Date : 28 June, 2022

Andhra Pradesh High Court - Amravati

Navata Eco Bricks vs Punjab National Bank on 28 June, 2022

Bench: C.Praveen Kumar, Tarlada Rajasekhar Rao

           HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

                   MAIN CASE No.W.P.No.16125 of 2022

                             PROCEEDING SHEET

Sl.   DATE                               ORDER                                OFFICE
No.                                                                            NOTE
03. 28.06.2022 CPK,J & TRR, J

                                 W.P.No.16125 of 2022

                     Notice before admission.
                     Sri Hanumantha Rao Bachina, learned counsel
               takes notices on behalf of the respondents.

As seen from the record, counter affidavits are filed. The short question that arises for consideration in this matter is, whether the Bank was right in proceeding with the auction in respect of the property?

A registered lease agreement was entered into much prior to the property being mortgaged to the Bank.

Relying upon the judgment of Hon'ble Supreme Court in Bajarang Shyamsunder Agarwal vs. Central Bank of India & another in Criminal Appeal No.1371 of 2019, Sri P.A. Seshu, learned counsel for the petitioner, would contend that since the Registered Lease Agreement was prior to mortgage of the property and having regard to the manner of transaction involved, the bank erred in putting the property to sale. He further submits that the Division Bench of High Court of Telangana in V.V.S.S.S. Dattatreya Sarma vs. Central Bank of India reported in LAWS(TLNG) 2020 (1) 138 squarely covers the issue on hand.

On the other hand, Sri Hanumantha Rao Bachina, learned counsel for the respondents opposed the same, contending that the petitioner herein has violated the conditions of lease and as such, they are not entitled for any relief.

Prima-facie even assuming that the conditions of lease are violated, which is disputed, it is for the Lessor to cancel the lease and the bank may not have any say in this matter, which relates to auctioning of the property.

As the matter requires adjudication at length, we direct the Registry to list the matter for hearing on 18.07.2022.

Having regard to the above, there shall be interim stay as prayed for, for a period of three (3) weeks.

_______ CPK, J

________ TRR, J Note:

Issue CC tomorrow.

B/o.EPS/MS