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Judgment
Rohit Arya, J
This appeal by judgment debtor is directed against the impugned order dated 11/09/2023 passed in Writ Petition No.22626/2023. Relevant facts for disposal of the appeal are to the following effect:
Respondent No.1 issued notice under Section 13(2) of SARFAESI Act to the appellant/judgment debtor on 03/11/2022. The appellant challenged the said notice before the DRT on 13/12/2022 alongwith the interim application.
After notice to the respondents, the Tribunal passed the interim order on 06/02/2023 whereby subject to deposit of Rs.One Crore in four equal installments within two months, proceedings under Section 13(4) were stayed. However, the said order was modified on 09/03/2023 to the effect that auction proceedings shall be subject to the final outcome of pending proceedings. On 21/07/2023, DRT passed another order and orders dated 06/02/2023 and 09/03/2023 were discontinued. Thereafter, in view of the aforesaid order, Collector has passed the impugned order on 18/08/2023. It appears that thereafter, the appellant again moved an application for interim protection and upon hearing learned counsel for the parties, DRT reserved the case for orders on 17/08/2023 and on 19/10/2023 has passed the order of maintaining status quo by the parties.
The Writ Court has passed the impugned order on 11/09/2023 justifying the order passed by the Collector on 18/08/2023.
In the aforesaid factual backdrop, Shri Bahirani submits that Writ Court as well as Collector have fallen in error having subjected the appellant to the rigor of order passed under SARFAESI Act since proceedings before DRT were pending. In all fairness, Collector should have stayed away from passing the order under Section 14 of SARFAESI Act, therefore, Writ Court ought to have set aside the order passed by the Collector.
Per contra, Shri Raghuvanshi on advance notice submits that interim orders dated 06/02/2023 and 09/03/2023 were not continued by the DRT on 21/07/2023, therefore, no fault can be found with the authority and jurisdiction of the Collector while passing the order on 18/08/2023. Subsequent interim order of 19/10/2023 was not in existence either at the stage Collector passed the order under Section 14 of SARFAESI Act or when Writ Court disposed of the petition on 11/09/2023, therefore, on the strength of the order passed on 19/10/2023, no exception can be taken to the proceedings before the Collector or impugned order passed by Writ Court.
We are in agreement with Shri Raghuvanshi that as on the date Collector passed the impugned order dated 18/08/2023, interim orders dated 06/02/2023 and 09/03/2023 were not in existence in view of the order passed on 21/07/2023, therefore, no fault can be found either on the part of the Collector exercising the jurisdiction under Section 14 of SARFAESI Act or with the impugned order. However, since DRT has passed the order dated 19/10/2023 to the effect that:
"After hearing both the side matter is reserved for order till then so far physical possession of property is concerned status quo shall be maintained;" we deem it appropriate to clarify that the order of the Collector shall immediately come into operation no sooner the DRT passes the final order. DRT is hereby directed to pass the order within a period of one week from today.
Registry of this Court shall send the copy of the order passed today to the DRT, Jabalpur by E-mail as well as other modes immediately within two days.
Appellant shall appear before the DRT on 30/10/2023 and submit the order passed today for its compliance strictly.
With the aforesaid, this petition stands disposed of.
Certified copy as per rules.