Karnataka High Court
M/S Metalex Steel Strips Private Ltd vs The Authorized Officer on 26 June, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
-1-
NC: 2024:KHC:23732
WP No. 583 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 26TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 583 OF 2023 (GM-DRT)
BETWEEN:
M/S METALEX STEEL STRIPS PRIVATE LTD
A PRIVATE LIMITED COMPANY
PLOT NO 158-159 (P) KIADB INDUSTRIAL AREA
BOMMASANDRA JIGNI LIN ROAD
BENGALURU - 562106
REP. BY ITS DIRECTOR MR SANJAY BHANDARI
(REGISTERED UNDER COMPANIES ACT 2013)
...PETITIONER
(BY SRI. BHARATH KUMAR V, ADVOCATE)
AND:
1. THE AUTHORIZED OFFICER
AND ASSISTANT GENERAL MANAGER
PUNJAB NATIONAL BANK
BENGALURU CITY BRANCH
VOKKALIGARA SANGHA BUILDING
HUDSON CIRCLE
BENGALURU - 560 027.
Digitally signed
by LEELAVATHI
SR 2. SRI JEETENDRA GANDHI
Location: HIGH S/O LATE K.L. GANDHI
COURT OF PROP. M/S. GANDHI IRON AND STEEL
KARNATAKA NO. 44/1, NEW GANGAMMACHARI STREET
MOTINAGAR, CITY MARKET
BANGALORE - 560 002.
...RESPONDENTS
(BY SRI. T P MUTHANNA, ADVOCATE FOR R1;
R2 IS SERVED BUT UNREPRESENTED)
THIS WP FILED UNDER THE ARTICLES 226 AND 227 OF THE
CONSTITUTION OF INDIA PRAYING TO DIRECT THE R1 TO
COMPLY WITH THE FINAL ORDER DATED 21.08.2017 IN T.S.A.,
NO.47/2017 (S.A.NO.376/6-DRT-1) ANNEXURE-A PASSED BY THE
DEBT RECOVERY TRIBUNAL-11, BENGALURU AND
-2-
NC: 2024:KHC:23732
WP No. 583 of 2023
CONSEQUENTLY REFUND A SUM OF RS.1,41,11,480/- (RUPEES
ONE CRORE FORTY ONE LAKHS ELEVEN THOUSAND FOUR
HUNDRED EIGHTY ONLY) TO THE PETITIONER AS REFUND OF
SALE PRICE AND OTHER INCIDENTAL EXPENSES, ALONG WITH
AN INTEREST OF 12 PERCENT FROM 29.08.2016 AND ETC.,
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE
COURT MADE THE FOLLOWING:
ORDER
In this petition, the petitioner seeks the following reliefs:
"i) Issue writ in the nature, of Mandamus or any other
appropriate writ, order or direction directing the
RespondentNo.1 to comply with the Final Order dated
21.08.2017 in T.S.A. No.47/2017 (S.A.No.376/16-DRT-1)
Annexure-A, passed by the Hon'ble Debt Recovery
Tribunal-11, Bengaluru and consequently refund a sum of
Rs.1,41,11,480/- (Rupees One Crore Forty One Lakhs
Eleven Thousand Four Hundred Eighty Only) to the
petitioner as refund of sale price and other incidental
expenses, along with an interest of 12% from 29.08.2016.
ii. Issue a writ in the nature of mandamus or any other
writ, order or direction directing the respondent No.1 herein
to ensure cancellation of the sale certificate dated
29.08.2016 executed by the Respondent No.1 in favour of
the Petitioner and registered as Document No.RJN-1-
02479-2016-17 INBOOK No.1 and stored in CD No.RJND-
296 with the office of Sub-Registrar, Rajajinagar,
Bengaluru (Annexure-B).
iii. To grant such other and further relief so as to cost of
the proceedings as this Hon'ble Court deems fit in the
NC: 2024:KHC:23732
circumstances of the case in the interest of justice and
equity."
2. Heard learned counsel for the petitioner and learned
counsel for respondent No.1 and perused the material on record.
3. In addition to reiterating the various contentions urged
in the memorandum of petition and referring to the material on
record, learned counsel for the petitioner invited my attention to the
order dated 20.12.2023 passed in W.P.No.9467/2023 in order to
contend that pursuant to said order, which remanded the matter to
DRT, the proceedings initiated in TSA No.47/2017 (SA
No.376/2016) filed by respondent No.2-borrower was dismissed by
the Debt Recovery Tribunal (DRT) vide order dated 19.02.2024. It
is the grievance of the petitioner that despite the petitioner/auction
purchaser requesting the DRT to refund the amount paid by him to
respondent No.1-Bank by placing reliance upon the liberty reserved
in his favour by this Court in his favour, the DRT is not refunding
the amount in favour of the petitioner, who is before this Court by
way of the present petition.
3.1 In support of his contentions, learned counsel for the
petitioner relied upon the following decisions:
NC: 2024:KHC:23732
i. M/s. Paramount Constructions Company Vs. The
Authorised Officer & Chief Manager and others -
W.P.No.33034/2019 dated 28.07.2023 passed by a Co-
ordinate Bench of this Court.
ii. S. Shanmuganathan Vs. The Authorized Officer,
Indian Overseas Bank - W.P.No.39199/2016 dated
28.04.2017 passed by the Hon'ble High Court of
Judicature at Madras.
4. Per contra, learned counsel for respondent No.1-Bank
does not dispute that pursuant to the order or remand, the
proceedings before the DRT initiated by respondent No.2-borrower
had been dismissed. It is pointed out that an amount of
Rs.2,46,29,865/- deposited by respondent No.1 before this Court
during the pendency of W.P.No.9467/2023 has still remained in
deposit before this Court and has not been transferred to the DRT.
It is also submitted that in the event the petitioner files an
application seeking refund before the DRT, respondent No.1 may
be is reserved liberty to file objections to the said application, which
could be considered by the Tribunal in accordance with law.
4.1 In support of his contentions, learned counsel for
respondent No.1 relied upon the judgment of the Apex Court in the
NC: 2024:KHC:23732
case of Eva Agro Feeds Private Limited v. Punjab National
Bank and Anr. - AIR OnLine 2023 SC 727.
4.2 Learned counsel for respondent No.1-Bank submits
that though an application seeking release of the said amount has
been filed by respondent No.1 in W.P.No.9467/2023, respondent
No.1 shall not press the said application till disposal of the said
application to be filed before the DRT.
5. In view of the aforesaid facts and circumstances, I
deem it just and appropriate to dispose of this petition by issuing
certain directions.
6. In the result, I pass the following:
ORDER
i) The Writ Petition is disposed of.
ii) Both petitioner and respondent No.1 are directed to appear
before the DRT in TSA No.47/2017 (SA No.376/2016) on
19.07.2024.
iii) On that day i.e., on 19.07.2024, the petitioner is permitted to
file an application seeking refund of the amount of
Rs.2,46,29,865/- (Rupees Two Crores Forty Six Lakhs Twenty
Nine Thousand Eight Hundred and Sixty Five only) deposited
by respondent No.1-Bank before this Court in
NC: 2024:KHC:23732
W.P.No.9647/2023, in view of the liberty granted in his favour in
W.P.No.9647/2023.
iv) Upon the petitioner filing such an application on
19.07.2024, liberty is reserved in favour of respondent No.1 to
file objections and contest the said application.
v) It is directed that pursuant to the petitioner filing an
application and the concerned respondent filing objections to
the same, the DRT shall provide sufficient and reasonable
opportunity to both parties and consider and pass appropriate
orders on the same, within a period of one month from
19.07.2024, bearing in mind the judgments relied upon by both
sides.
vi) It is further directed that till disposal of the said application
by the DRT, respondent No.1 shall not precipitate the
application filed in W.P.No.9467/2023 before the Hon'ble
Division Bench.
vii) All rival contentions are kept open and no opinion is
expressed on the same.
Sd/-
JUDGE
BMC
