Madras High Court
The Authorized Officer vs A.Ponnusamy : 1St on 6 October, 2023
C.R.P(MD)No.1963 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 06.10.2023
CORAM:
THE HONOURABLE MR.JUSTICE RMT.TEEKAA RAMAN
AND
THE HONOURABLE MR.JUSTICE P.B.BALAJI
C.R.P(MD)No.1963 of 2021
and
C.M.P(MD)No.10557 of 2021
and
C.M.P(MD)No.3094 of 2022
The Authorized Officer,
Tamilnadu Mercantile Bank Limited,
2/24-2, I Floor, P.B.No.18,
Thiruvananthapuram Main Road,
Marthandam. :Petitioner/1st Respondent/
1st Defendant
.vs.
1.A.Ponnusamy : 1st Respondent/Petitioner/
Applicant
2.N.Rajan :2nd Respondent/2nd Respondent/
2nd Defendant
3.Mr.S.Varatharajan :3 Respondent/3rd Respondent/
rd
3rd Defendant
PRAYER: Civil Revision Petition filed under Article 227 of the
Constitution of India praying to set aside the order of interim stay
granted by the learned in-charge Debts Recovery Tribunal, Madurai
dated 29.10.2021 in I.A.No.1517 of 2020 in S.A.No.385 of 2020.
1/6
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C.R.P(MD)No.1963 of 2021
For Petitioner :Mr.N.Dilip Kumar
For R1 :Mr.A.N.Ramanathan
For R2 & R3 :No appearance
ORDER
******
[Judgment of the Court was made by RMT.TEEKAA RAMAN.,J.]
Heard the learned counsel appearing for the petitioner and the
learned counsel appearing for the first respondent.
2. By consent of both sides, this Civil Revision Petition itself is
taken up for final disposal.
3. This Civil Revision Petition has been filed by the Authorised
Officer of the Tamilnadu Mercantile Bank (In short 'the Bank').
4. The Brief facts of the case is that the second respondent,
(borrower) has borrowed a loan from the appellant's bank and the
said loan has been defaulted and declared as NPA. Therefore,
proceeding under the SARFAESI Act has been initiated. On
06.08.2016 a demand notice under Section 13(2) of the SARFAESI
Act has been issued and thereafter, on 21.12.2016 possession
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C.R.P(MD)No.1963 of 2021
notice was issued by the appellant's bank. On 05.11.2020 the
appellant's Bank has issued sale notice and the sale said to have
been conducted on 04.12.2020 and the sale certificate was also
registered on 09.12.2020 in favour of the third respondent. At this
juncture, it appears that the first respondent, whose property is put
on auction has filed the SARFAESI Application in S.A.No.385 of
2020 challenging the sale notice dated 05.11.2020. Pending the
SARFAESI Application, the Bank has filed an application in C.M.P.No.
4287 of 2021 under Section 14 of SARFAESI Act before the learned
Chief Judicial Magistrate, Kanyakumari District at Nagercoil for
taking possession and the said application was allowed on
31.08.2021. Pursuant to the order passed by the learned Chief
Judicial Magistrate, physical possession was taken on 09.04.2022.
5. In the meanwhile, it is represented that the property
belonged to the guarantor, namely, the first respondent was brought
in auction and in the sale proceedings, the third respondent herein
is the auction purchaser. Hence, an amendment application has
been filed in the SARFAESI Application in S.A.No.385 of 2020 to
challenge the confirmation of sale. Further, the first respondent has
filed an application in I.A.No.1517 of 2020 to stay the auction
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C.R.P(MD)No.1963 of 2021
proceedings initiated by the Bank. Since there was no Presiding
Officer in the Debt Recovery Tribunal at Madurai and also Debt
Appellate Recovery Tribunal at Chennai, the present Civil Revision
Petition has been filed before this Court.
6. The learned counsel appearing for the appellant/Bank
would contend that at the time of admission, this Court on
09.12.2021 has stayed the impugned order, dated 29.10.2021
passed by the Debt Recovery Tribunal.
7. Learned counsel appearing for the first respondent seeks
short accommodation.
8. Now, after hearing the learned counsel for the appellant
and the first respondent, perusing the materials available on record
and taking note of the change in circumstances that now the
Presiding Officer has been appointed for the Debt Recovery Tribunal
at Madurai, this Court, in the interest of justice, passed the following
order:-
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C.R.P(MD)No.1963 of 2021
“As stated by the counsel for the Bank that sale notice has
been issued and that is the subject matter of S.A.No.385 of 2020.
Sale was conducted and the sale certificate has been issued and the
same was duly registered before the competent Sub-Registrar on
09.12.2020. Possession proceedings under Section 14 of SARFAESI
Act has also been completed on 31.08.2021 and thereafter
application has been filed for taking inventory before the Chief
Judicial Magistrate that is also completed on 09.04.2022. Since the
amendment application and the main SARFAESI Application is
pending before the concerned Debt Recovery Tribunal, this Civil
Revision Petition is disposed of with a direction to the Debt Recovery
Tribunal at Madurai to dispose of the S.A.No.385 of 2020 within a
period of twelve (12) weeks from the date of receipt of a copy of
this order. Both parties are reserves their right to raise the plea,
which they feel deem fit, in the SARFAESI application. No costs.
Consequently, connected miscellaneous petitions are closed”.
Index:Yes/No [T.K.R.,J.] [P.B.B.,J.]
Internet:Yes/No 06.10.2023
NCC:Yes/No
AM
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C.R.P(MD)No.1963 of 2021
RMT.TEEKAA RAMAN,J.
AND
P.B.BALAJI,J.
am
C.R.P(MD)No.1963 of 2021
06.10.2023
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