Madras High Court
P.Elavarasan vs The Registrar on 2 November, 2021
1
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02.11.2021
CORAM:
THE HONOURABLE MR.JUSTICE M.DURAISWAMY
AND
THE HONOURABLE MR.JUSTICE K.MURALI SHANKAR
W.P(MD)NO.19923 OF 2021
and
W.M.P(MD)No.16618 of 2021
P.Elavarasan :Petitioner
.vs.
1.The Registrar,
Debts Recovery Tribunal,
Chennai.
2.The Presiding Officer,
Debts Recovery Tribunal,
Coimbatore.
3.The Authorized Officer,
Canara Bank,
Karur SME Branch,
37, Ist Cross,
Vaiyapuri Nagar,
Karur – 639 001. : Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution
of India, praying this Court to issue a Writ of Certiorarified
Mandamus calling for the records pertaining to the impugned
order passed by the first respondent, dated 15.09.2021 in I.A.No.36
of 2020 in AIR(SA)No.396 of 2019 and to quash the same and
consequently to direct the first respondent to take the appeal in
AIR(SA)No.396 of 2019 on file and decide the same on merits and
in accordance withlaw, within a time frame.
https://www.mhc.tn.gov.in/judis/
2
For Petitioner :Mr.Iyappan
For Respondents :Mr.N.Dilipkumar
ORDER
*************
[Order of the Court was made by M.DURAISWAMY.,J.]
The Petitioner has challenged the order passed by the Debts
Recovery Appellate Tribunal, dated 15.09.2021 in I.A.No.36 of
2020 in AIR(SA)No.396 of 2019.
2.Challenging the sale notice issued by the respondent/Bank,
the Petitioner preferred a SARFAESI appeal in S.A.No.565 of 2019,
on the file of the Debts Recovery Tribunal, Coimbatore along with
a petition for interim stay. The Debts Recovery Tribunal,
Coimbatore declined to grant interim stay in I.A.No.2952 of 2019.
Challenging the order, dated 20.11.2019 passed by the Debts
Recovery Tribunal, Coimbatore in the stay petition, the Petitioner
has preferred an appeal before the Debts Recovery Appellate
Tribunal in AIR(SA)No.396 of 2019 along with an application in
I.A.No.36 of 2020, for waiver of pre-deposit amount.
3.The Debts Recovery Appellate Tribunal by order, dated
15.09.2021, directed the Petitioner to pay a sum of Rs.20 Lakhs in
two installments of Rs.10 Lakhs each. Challening this order, the
present Writ Petition has been filed by the Petitioner.
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4.The learned counsel appearing for the Petitioner submitted
that the Division Bench of this Court in the judgment in the case
of Sree Jeya Soundharam Textile Mills Private Limited and
others .vs. Canara Bank, represented by its Manager,
Tirupur and others reported in 2019 3 CTC 497, held that the
appellant who has filed an appeal before the Debts Recovery
Appellate Tribunal as against the interlocutory order passed by
the Debts Recovery Tribunal, is not liable to make the pre-deposit
if the liability is not determined by the Debts Recovery Tribunal in
the interlocutory order.
5.Relying upon the said judgment, the learned counsel
submitted that the order passed by the Debts Recovery Appellate
Tribunal is to be set aside.
6.Mr.N.Dilip Kumar, learned counsel appearing for the
respondent/Bank submitted that after the disposal of the stay
petition in I.A.No.2952 of 2019 in S.A.No.565 of 2019 by the Debts
Recovery Tribunal, Coimbatore, the respondent/Bank had
conducted the auction and the property was sold in public
auction on 20.11.2019 and the sale was also confirmed on 4.3.2020
and the Sale Certificate was registered on 20.10.2021. The learned
counsel appearing for the respondent Bank has also given a copy
https://www.mhc.tn.gov.in/judis/
of the communication received from the respondent Bank to the
learned counsel for the Petitioner.
7.In view of the submissions made by the learned counsel
appearing on either side, following the ratio laid down by the
Division Bench of this Court in the judgment reported in 2019 3
CTC 497 cited supra, the order passed by the DRAT is liable to be
set aside and accordingly the same is set adide. The Petitioner is
entitled to get refund of a sum of Rs.10 Lakhs deposited by him to
the credit of Registrar, Debts Recovery Appellate Tribunal,
Chennai. Since the SARFAESI Appeal is pending before the Debts
Recovery Appellate Tribunal, it is open to the Petitioner to
prosecute the SARFAESI Appeal before the Debts Recovery
Tribunal, Coimbatore in accordance with law.
8.With these observations, the Writ Petition stands disposed
of. No costs. Consequently, connected Miscellaneous Petiiton is
closed.
(M.D.,J.] [K.M.S.,J.]
02.11.2021
Index:Yes/No
Internet:Yes/No
vsn
https://www.mhc.tn.gov.in/judis/
Note :
In view of the present lock
down owing to COVID-19
pandemic, a web copy of
the order may be utilized
for official purposes, but,
ensuring that the copy of
the order that is presented
is the correct copy, shall be
the responsibility of the
advocate / litigant
concerned.
To
1.The Registrar,
Debts Recovery Tribunal,
Chennai.
2.The Presiding Officer,
Debts Recovery Tribunal,
Coimbatore.
3.The Authorized Officer,
Canara Bank,
Karur SME Branch,
37, Ist Cross,
Vaiyapuri Nagar,
Karur – 639 001.
https://www.mhc.tn.gov.in/judis/
M.DURAISWAMY, J.
AND
K.MURALI SHANKAR, J.
vsn
0RDER MADE IN
W.P(MD)NO.19923 OF 2021
and
W.M.P(MD)No.16618 of 2021
02.11.2021
https://www.mhc.tn.gov.in/judis/
