M/S Kgoc Terminals Private Ltd vs Union Of India
2022 Latest Caselaw 7269 AP

                          HIGH COURT OF ANDHRA PRADESH

            MAIN CASE No.: W.P. No.30567 of 2022

                                    PROCEEDING SHEET

Sl.
No      DATE                                 ORDER                            OFFICE
                                                                               NOTE

1     21.09.2022   UDPR, J & BVLNC, J
                          Heard learned Senior Counsel, Sri C.Raghu, for
                   the petitioner and Sri Sreedhar Valiveti, learned
                   standing counsel for respondent bank.

The main thrust of argument of learned counsel for petitioner is that the proposed auction on 26.09.2022 pursuant to sale notice dated 07.09.2022 undertaken by the respondent bank is in utter violation of the guidelines issued by the Hon'ble Apex Court in its judgment in Small Scale Industries Manfacturers Association (Registered) v. Union of India, dated 23.03.2021 and therefore, the auction as proposed is vitiated by the illegality.

Per contra, learned counsel for the respondent bank would argue that the aforesaid judgment has no application to the petitioner as the petitioner is not a small scale industry and further, he already availed sufficient moratorium for three years from 2017-2020 and still the petitioner did not repay the loan amount and hence, loan account of the petitioner was declared as NPA and the bank has issued Section 13(2) notice, for which the petitioner not issued any reply and thereafter, the bank was constrained to proceed with the impugned auction. Whether the judgment in Small Scale Industries Manufacturers Association (Registered) v. Union of India, has application to the petitioner's case is a mixed question of fact and law, which can be decided only after the respondent filed full-fledged counter. Therefore, we deem it appropriate to direct the respondent bank to file its detailed counter.

For counter of the respondent, post on 29.09.2022.

In the meanwhile, the respondent bank may proceed with the auction as proposed on 26.09.2022, however, the same shall not finalized till the next date of hearing.

________ UDPR, J

________ BVLNC, J SS