PRABHAVATHI SRIRAM Vs. AUTHORIZED OFFICER, ICICI BANK LIMITED

JUDGEMENT

(1.) Petitioners are seeking for quashing of the order dated 01.02.2018 Annexure-Q passed in TSA No. 74/2017 by the Debts Recovery Tribunal - II at Bengaluru and for consequential order of allowing the Interlocutory Application bearing No. 611/2017 which came to be filed by the petitioner of Redemption for Mortgage, which has since been dismissed.

(2.) Respondent - Bank had extended credit facility to 5th respondent company and said loan account was declared a Non-Performing Asset NPA. Petitioners had stood as guarantors and has offered their properties as security were issued with a notice dated 18.11.2015 under Section 13(2) of SARFAESI Act calling upon the petitioners to pay a sum of Rs. 4,89,21,915/- in respect of loan borrowed by 5th respondent (borrower) . Subsequently, possession notice came to be issued by second respondent and aggrieved by the same. Petitioner preferred two appeals in S.A. No.111/2016 and 112/2016 before the Debts Recovery Tribunal , Bengaluru. Pursuant to interim order passed by Tribunal, petitioners deposited a sum of Rs. 50,00,000/- (Rupees Fifty Lakhs) in all with second respondent Bank.

(3.) For reasons best known, the bank did not proceed with the auction sale. Notice issued on 22.01.2016 and thereafter, on 18.07.2016 a fresh notice under section 13(2) SARFAESI Act was issued, calling upon the petitioners to pay a sum of Rs. 5,68,77,853/-. Same was replied by petitioners and sought for recall of said notice. Thereafter, on 11.11.2016, bank proceeded to issue possession notice and sale notice for e-auctioning the properties came to be issued on 24.11.2016. second respondent bank proceeded with the auction of schedule 'A' to 'D' properties. Being aggrieved by the same, petitioners filed an appeal in S.A. No. 590/2016 for setting aside the sale notice which appeal came to be re-numbered as TSA No. 74/2017. On 26.04.2017, an Interlocutory Application in S.A. No. 611/2017 came to be filed seeking permission of the Tribunal to deposit a total sum of Rs. 5,00,00,000/- towards the discharge of liability of fifth respondent and to redeem the mortgage. Petitioners sought for a direction to the Bank for release of original title deeds of the petitioners property. On account of non-consideration of said application by Debts Recovery Tribunal, petitioners approached this Court in W.P. No. 26973/2017. The said writ petition came to be disposed off on 05.12.2017 Annexure 'M' by observing as under: