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Shresht Industries Private Limited vs Canara Bank

Telangana High Court · Decided on 24 March 2022 · Citation: (2022) 03 TEL CK 0066

HON’BLE JUDGES
Ujjal Bhuyan, J · S. Nanda, J
ACTS & SECTIONS REFERRED
Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 — Section 13(2), 17
RESULT
Disposed Of
CASE NUMBER
Writ Petition Nos. 16497 Of 2021, 14633 Of 2022
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Judgment

9 paragraphs · 346 words
1.

This order will dispose of both Writ Petition Nos.16497 of 2021 and 14633 of 2022.

2.

We have heard Mr. T. Vijay Kumar, learned counsel for the petitioner, and Mr. A.V.S.S.Prasad, learned counsel for the respondent/Canara Bank.

3.

In Writ Petition No.16497 of 2021 petitioner has challenged notice dated 17.04.2021 issued by respondent/Canara Bank under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (briefly, ‘the SARFAESI’ hereinafter). On the other hand, in Writ Petition No.14633 of 2022, petitioner has challenged legality and validity of sale notice dated 11.02.2022 whereby auction sale of the schedule property is fixed on 25.03.2022.

4.

It is seen that against the steps taken by the respondent/Canara Bank under the SARFAESI Act, petitioner has filed securitization application under Section 17 of the SARFAESI Act before the Debts Recovery Tribunal-II, Hyderabad (Tribunal) being S.A.(IR) No.324 of 2022.

5.

From the sale notice dated 11.02.2022, we find that outstanding dues of the petitioner has been quantified by the respondent at Rs.25,53,96,529.37 as on 01.02.2022.

6.

While challenge to the notice under Section 13(2) of the SARFAESI Act is otherwise not maintainable and because of subsequent developments has also become redundant, therefore we close Writ Petition No.16497 of 2021 as having been rendered infructuous.

7.

Insofar, Writ Petition No.14633 of 2022 is concerned, since petitioner has invoked the statutory remedy under Section 17 of the SARFAESI Act, we are of the view that petitioner may pursue its remedy thereunder. Further, if the petitioner deposits 15% of the outstanding dues as mentioned above within a period of thirty (30) days from today, respondent shall not proceed further pursuant to the e-auction sale notice dated 11.02.2022. However, if the petitioner defaults in making the payment as above, it would be open to the respondent/Canara Bank to take necessary steps for realization of outstanding dues in accordance with the law.

8.

This disposes of the writ petitions. No order as to costs.

9.

As a sequel, miscellaneous applications pending if any in these Writ Petitions, shall stand closed.