ESJAYPEE IMPEX PRIVATE LIMITED Vs. ASST. GENERAL MANAGER

JUDGEMENT

(1.) The proceedings in the present matter emanate from the failure of the appellant M/s. Esjayee Impex Pvt. Ltd. To repay a loan to Canara Bank and the consequent proceedings initiated by the Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the SARFAESI Act).

(2.) The Chief Metropolitan Magistrate passed an order under Sec. 14 of the said Act on 24/2/2019 qua handing over possession of secured assets to Canara Bank in respect of an immovable property being Old Door No. 23, New Door No. 2, Rajarathinam Street, Kilpauk, Chennai-600010 as security to the Bank. The appellant, aggrieved by this order, filed SA No. 139 of 2019 before the Debt Recovery Tribunal-1(hereafter referred to as "DRT"), Chennai in which a status quo order was passed dtd. 28/5/2019. The continuation of these proceedings on status quo order resulted in the Canara Bank in approaching Madras High Court by filing W.P. No.23573 of 2019.

(3.) The bank stated that it had already sold the secured assets to the auction purchaser namely, M/s Realty Associates. The possession could not be transferred because of the status quo order. The auction purchaser had paid Rs.5.11 crores as against auction price of Rs.20.44 crores.