M/s Sudershan Ferrolloys & Bars Ltd. And Another vs Indian Bank, Stressed Assets Management Branch & Others

Manoj Kumar Tiwari, J

Heard learned counsel for the parties through Video Conferencing.

By means of this writ petition, petitioners have sought the following reliefs:-

“I. Issue a writ order in the nature of certiorari to quash the order dated 10-01-2022 passed by respondent no 1 and Auction Confirmation order

dated 31-1-2022 issued by respondent no 1 (Contained as annexure no 5 & 6 to the writ petition respectively).

II. To issue writ or direction to call for the records of the e auction alleged to be held on 30-12-2022 by respondent no 1 and 2.â€​

Earlier petitioners had filed Writ Petition (M/S) No. 2880 of 2021, which was disposed of vide order dated 30.12.2021. The order dated 30.12.2021

is reproduced below for ready reference:-

“Petitioners are borrower against whom recovery proceedings have been initiated by invoking provisions of Securitization and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002.

By means of this writ petition, petitioners have challenged the sale notice issued under Rule 6(2) & 8(6) of the Security Interest (Enforcement)

Rules, 2002.

Mr. Ajay Singh Bisht, learned counsel appearing for respondent no. 2 submits that the lending bank had filed O.A. No.44 of 2018 and claim of the

bank was decreed. He further submits that despite the said judgment, petitioners have failed to repay the loan.2

Mr. Parikshit Saini, learned counsel appearing for the petitioners submits that petitioners are ready and willing to settle the dispute, but they want

opportunity to approach the Competent Authority in the bank.

Having regard to the willingness showing by the petitioner to settle the dispute, they are permitted to approach the Competent Authority in the bank

by making representation on or before 05.1.2022. If petitioners make such representation, the Competent Authority in the bank shall consider

petitioners’ request and take appropriate decision, as per law, within one week thereafter.

Till 12.01.2022 or till decision on petitioners’ representation, whichever is earlier, auction sale of the secured asset of the petitioners, if made,

shall not be confirmed.

Let a certified copy of this order be issued today itself.â€​

Learned counsel for the petitioners submits that pursuant to the order passed in Writ Petition (M/S) No. 2880 of 2021, petitioners made a

representation, which was rejected by the Competent Authority in the Bank on 10.01.2022.

Learned counsel for the Bank submits that after rejection of petitioners’ representation, respondent no.3 was declared as the highest bidder and

sale certificate was issued in his favour on 24.01.2022 and possession of the secured asset was also handed-over to respondent no.3 on the same day.

Learned counsel for the petitioners however submits that auction sale of the secured asset was made illegally, inasmuch as in the auction process

only one bidder had participated and moreover, secured asset has been sold in violation of order passed by this Court.

Learned counsel for the respondent-Bank however disputed this submission made by learned counsel for the petitioners.

Be that as it may, the relief as claimed by petitioners can be granted by Debt Recovery Tribunal under Section 17 SARFAESI Act, 2002.

Petitioners have challenged the order dated 10.01.2022 whereby their proposal for One Time Settlement has been rejected. They have also challenged

the order dated 13.01.2022, whereby respondent no.3 was informed by the Bank that he is the highest bidder with direction to deposit 25% of the bid

amount on or before 14.01.2022 and to deposit the balance amount within 15 days i.e. on or before 28.01.2022. In view of availability of alternative

remedy to the petitioners, this Court is not inclined to entertain this Writ Petition.

Since the auction sale has been confirmed, therefore, prayer made by learned counsel for petitioners for restoration of possession of the secured

asset to the petitioners also cannot be granted.

Accordingly, the writ petition is dismissed with liberty to petitioners to approach Debts Recovery Tribunal, Dehradun under Section 17 of

SARFAESI Act, 2002. It shall be open to the petitioners to raise all contentions before the Debts Recovery Tribunal, Dehradun.