Shri G.K. Bhatnagar vs Bank Of Baroda
2025 Latest Caselaw 2600 MP

Madhya Pradesh High Court

Shri G.K. Bhatnagar vs Bank Of Baroda on 9 January, 2025

Author: Sushrut Arvind Dharmadhikari

Bench: Sushrut Arvind Dharmadhikari

                                                              1                                WP-25963-2024
                                       IN THE HIGH COURT OF MADHYA PRADESH
                                                    AT JABALPUR
                                                      WP No. 25963 of 2024
                                     (SHRI G.K. BHATNAGAR AND OTHERS Vs BANK OF BARODA AND OTHERS )



                           Dated : 09-01-2025
                                 Shri Brian Da Silva - Senior Advocate with Shri Sarabvir Singh
                           Oberoi - Advocate for the petitioners.

                                 Heard on the question of admission and interim relief.
                                 Issue notice to the respondent(s).

Learned counsel for the petitioners contended that the learned DRT

while passing the impugned order had relied upon the un-amended provisions of Section 13(8) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( in short ... SARFAESI Act, 2002) and held that prima facie there is no illegality in the auction conducted by the Bank relying on the Apex Court judgment in the case of Canara Bank Vs. M. Amrendra Reddy and Another [(2017) 4 SCC 735] which has been passed by the two Judges Bench and ignored the subsequent law in respect of Section 13(8) of the Act in the case of three Judges Bench in the case of Celir LLP Vs. Bafna Motors (Mumbai) Private

Limited and Ors. [2023 SCC Online SC 1209] which has considered the distinction between the pre-amended Section 13(8) and post amendment Section 13(8) of the Act. Therefore, the order impugned dated 31.07.2024 deserves to be kept in abeyance during pendency of this petition.

It is observed that the Apex Court in the case of South Indian Bank Ltd. and Anr. Vs. Naveen Mathew Philip reported in 2023 SCC Online SC

2 WP-25963-2024 435 has deprecated the practice of entertaining the writ petitions in respect to special financial law particularly the SARFAESI Act, 2002 and the petitioners may be relegated to avail the alternative remedy under Section 18 of the SARFAESI Act, 2002. In view of the aforesaid, the petitioners are not entitled for any relief.

Heard the learned counsel for the petitioners on interim relief. This Court finds force in the submission of the learned counsel for the petitioners.

Meanwhile the effect and operation of the impugned order dated 31.07.2024, passed in S.A. No.231/2017 by the learned Presiding Officer shall remain stayed till the next date of hearing. It is further directed that the parties shall also maintain status quo till the next date of hearing.

Certified copy as per rules.

                           (SUSHRUT ARVIND DHARMADHIKARI)                       (ANURADHA SHUKLA)
                                     JUDGE                                            JUDGE
                           sjk