191090008572023_17eb038a7bd02c7c070e46f9c3fde29a.pdf

Reportable/Non-Reportable
                                           
      
  
     Appeal No. 150 of   2023-DRAT-Kolkata
     IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
   THE HON’BLE  MR.  JUSTICE ANIL KUMAR SRIVASTAVA
               CHAIRPERSON
  Appeal No. 150 of 2023
            (Arising out of S.A. 236 of 2022 in DRT-I, Hyderabad) 
Union Bank of India, erstwhile Andhra Bank, Specialized Asset Recovery 
Management Branch, 3rd Floor, Andhra Bank Building, Sultan Bazar, Koti, 
Hyderabad – 500 095, represented by its Authorised Officer.
                
         … Appellant
-Versus-
1. Mr.  Anwar  Ali  Jiwani,   Son   of   Ameen  Jiwani,   H.   No.   5-49-58 
Bhagawati   Enclave,   Flat No.  202,  Opp. Sangeeta Apartment, Fateh 
Sultan Lane, Nampally, Hyderabad -  500 001;
2. Mr.  Karnali   Samnani,  Son of  Ali Bhai Samnani,   H.   No.   5-49-58 
Bhagawati  Enclave,   Flat  No. 202, Opp. Sangeeta Apartment, Fateh 
Sultan Lane, Nampally, Hyderabad -  500 001.
                       
   …  Respondents
Counsel for Appellants     
 …   
Ms. Aparajita Rao            
Ms. Swastika Roy 
Counsel for Respondent s 
          …   
Mr. Nemani Srinivas
JUDGMENT                         
:   
7th May, 2024
THE APPELLATE TRIBUNAL : 
Instant appeal has arisen against judgment and order 
dated 16.10.2023, passed by Learned DRT-I, Hyderabad, 
allowing  S.A. 236 of 2022 (Mr. Anwar Ali Jiwani & Another  
-vs- Union Bank of India).
2.
Facts of the matter, as would appear from the 
pleadings, are that e-auction was notified by the Appellant 
Bank on 11.2.2020 wherein the auction date was fixed on 
18.3.2020.   A SARFAESI Application, being S.A. 59 of 2020, 
was filed by the Borrower (Siri Smelters Energy Private 
Limited) wherein the Learned DRT on 16.3.2020 passed an 
interim order allowing the Borrower to make payment in 

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  Appeal No. 150 of   2023-DRAT-Kolkata
three instalments.  Auction was to be conducted on ‘As is 
Where is’ basis. Respondents participated in the auction 
proceedings.  They deposited 10% on 13.3.2020.  Auction 
was conducted on 18.3.2020 wherein the Respondents were 
declared as highest bidders.  They deposited the remaining 
amount of 15%, totaling 25%, on 18.3.2020.  Thereafter 
they were communicated by the Bank on 19.3.2020 to 
deposit the remaining 75% of the amount within 15 days 
from the date of receipt of the communication with an 
intimation that the sale shall be subject to the outcome of 
S.A. 59 of 2020.  Subsequent thereto, 75% of the amount 
was not deposited by the Respondents rather firstly on 
26.3.2020 extension was sought by the Respondents for 
depositing the amount which was granted by the Bank on 
3.4.2020 till 6.6.2020.  Again on 26.5.2020 time was sought 
by the Respondents for depositing the amount.  Thereafter, 
on 12.6.2020 Respondents moved an application for refund 
of the earnest money but instead of refunding the amount, 
Appellant Bank forfeited the amount on 25.6.2020.         
3.
Feeling 
aggrieved, 
a 
Writ 
Petition, 
being               
W.P. No. 10608 of 2020 was filed by the Respondents before 
the Hon’ble High Court for the State of Telangana at 
Hyderabad which was decided on 18.8.2022 relegating the 
matter 
to 
DRT.  
Thereafter, 
Respondents  
filed               
S.A. 236 of 2022  before the Learned DRT-I, Hyderabad 
which was decided by the impugned order dated 16.10.2023 
whereby the Learned DRT declared the letter dated 
26.5.2020 of the Bank, forfeiting 25% of the amount, as 

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  Appeal No. 150 of   2023-DRAT-Kolkata
illegal and further directed the Bank to refund the amount of 
Rs.47.20,000.00 with interest at the rate of 18% per 
annum. 
Feeling aggrieved, Appellant preferred the appeal.
I have heard the Learned Counsel for the parties and 
perused the record. 
4.
Learned Counsel for Appellant Bank submits that the 
impugned order suffers from material irregularities and 
illegalities.  
Auction 
was 
held 
on 
18.3.2020 
but               
S.A.

…