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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
(Appeal No. 53 of 2019 IA No.85 of 2021)
(Arising out of S.A. 104 of 2018 in DRT-1, Hydrabad)
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA
CHAIRPERSON
05.07.2022
B. Shiva Shankar.
… Appellant
-Vs-
Bank of India
… Respondents
Mr. N. Srinivas Learned Counsel
for Appellant.
Mr.
Dipankar
Das
Learned
Counsel for Respondent.
THE APPELLATE TRIBUNAL :
Instant Appeal is filed against the judgment order dated
23/04/2019 in S.A No.104 of 2018 passed by Learned DRT-1,
Hyderabad.
The
S.A.
was
dismissed
on
23/04/2019.
At the very outset it is relevant to mentioned that an Application
under section 17 of SARFAESI Act, was filed by the Appellant
challenging the Demand Notice under Section 13(2) and possession
notice under Section 13(4) of the SARFAESI Act coupled with violation
of rule 8(1) 8(2) of Security Interest Enforcement Rule,2002. Further
there is a challenge about Rule 8(6) (7) and rule 9(1) of the Rules.
Objections were filed by the Respondent before Learned DRT.
Learned DRT recorded a finding that all the actions taken by the Bank
are in accordance with law. Accordingly S.A. was dismissed.
During the course of the hearing the appeal, following order was
passed on 28/04/2022 for compliance.
“During the course of argument, Learned Counsel for the
Appellant prays for, and is granted, two weeks time for filing
supplementary affidavit on the point as to whether the amendment
2
application moved before the Learned Tribunal Was disposed of or not
and if allowed, whether the amendment was carried out in the original
S.A. before the Learned DRT; if so, whether opportunity of filing
objection was given to the Bank or not; if so, whether Bank has filed
any written statement against the amended petition before the
Learned DRT.”
In compliance of the order appellant has file supplementary
affidavit wherein it is admitted that an amendment application was
move by the appellant before Learned DRT-1, Hyderabad on
11/10/2018. Respondent Bank also filed objection against the
amendment application on 11/12/2018. Learned counsel submits that
the amendment application was neither allowed nor dismissed by the
Learned DRT although factum of issuances of sale notice was
considered by the Learned DRT.
It is borne from the record that sale notice was issued by the
Bank. Learned counsel for the Respondent Bank further submitted that
sale was conducted but the sale was not confirmed.
Now sale certificate was also not challenged. This fact was
brought before the Learned DRT by moving an amendment application
filed by the respondent Bank. Amendment application was filed before
final hearing of the S.A. which was well within the jurisdiction of
Learned DRT either to allow or dismiss the application before passing
the judgment on merit. It was imcumbent upon the Learned Presiding
Officer to decide the amendment application deciding the case. Hence
in my view, the judgement could not sustain and liable to be set aside
with a direction to Learned DRT should decide amendment application
on merit and thereafter decide the case afresh after giving opportunity
of hearing to parties.
The auction purchaser being a necessary party should also be
brought on record before DRT.
Respondent No.3 is auction purchaser who was duly served but
no one appeared on his behalf.
3
Learned DRT is expected to decide the matter within a period of
4 months from the date of the copy of judgment is received by
Learned DRT. Since there was an interim order passed by the Learned
DRT and the matter has been remanded back for disposal. Respondent
Bank shall not confirm the sale till the disposal of SARFAESI
Application. However, if any adjournment is sought for by the
SARFAESI Applicant, Learned DRT would be at liberty to vacate this
interim protection granted to the Applicant.
ORDER
Appeal is allowed. Mat
…