VISHAL CHOPRA Vs. ADITYA BIRLA FINANCE LTD

JUDGEMENT

(1.) Challenge in this petition is to the order passed by Debts Recovery Appellate Tribunal, Allahabad (henceforth 'the DRAT') allowing the appeal preferred by the respondent Finance Company to set aside the order passed by the Debts Recovery Tribunal, Jabalpur (henceforth 'the DRT') on 19-5-2018 by which it had sustained the petitioners' objection that the proceedings initiated by issuance of notice dated 9-9-2016 under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (henceforth 'the Act, 2002') cannot proceed further without deciding the petitioners representation dated 22-9-2016 by a reasoned order.

(2.) Since the issue lies in a narrow compass I would not refer to the details of loan transaction. Suffice it would be to mention that as on 9-9-2016 i.e. the date of issuance of notice under Section 13 (2) of the Act, 2002 the petitioner has outstanding dues to the sum of Rs.4.61 crores in his loan account, as he had failed to repay the amount under the schedule for repayment and the account had become NPA (Non Performing Asset). The petitioner submitted a representation on 22-9-2016 (Annexure P/3), however, he did not refer to the Bank's notice under Section 13 (2). When the Bank proceeded further in the matter and eventually order under Section 14 of the Act, 2002 was passed by the District Magistrate, Raipur, on 20-3-2017, the petitioner preferred WPC No.1423 of 2017. The said writ petition was dismissed by this Court on the ground of availability of alternative remedy.

(3.) Petitioners' appeal before the DRT was allowed by order dated 19-5-2018 (Annexure P/7) holding that the Bank having not decided the representation preferred by the petitioner it has violated the mandatory provisions of Section 13 (3-A) of the Act, 2002, therefore, the action of the Bank in proceeding further is illegal. Accordingly, all the proceedings subsequent to the notice was quashed and the Bank was directed to return physical possession of the property which has been taken over pursuant to the order dated 20-3-2017 passed by the District Magistrate, Raipur.