GOLDSPIN INDUSTRIES LTD Vs. AUTHORIZED OFFICER, CANARA BANK

JUDGEMENT

(1.) In the wake of action initiated by the respondent bank having treated the loan account of the third respondent as Non Performing Assets (NPA), the possession of the mortgaged property comprised in land admeasuring 16 kanal 4 Marla, bearing khewat No.140, killa no. 78/6, 7/1 (5-18)' 78/14/2 (1- 13), 15(4-16) & killa No. 78/6, 7/1 (2-5) surrounded by eight feet wall situated in village Nangal Kalan, Sonepat, Haryana (hereinafter referred to as "the subject property") was taken over in exercise of the authority vested in the mortgagee (respondent bank) in terms of Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as "the SARFAESI Act") divesting the petitioner of its possession on 30-01-2009. The petitioner filed an appeal under Section 17 of the SARFAESI Act, registered as SA No. 19/2009, before Debt Recovery Tribunal I, Chandigarh (hereinafter referred to as "the DRT"). The said SA was dismissed by the DRT by judgment dated 23-09-2013. The petitioner preferred appeal bearing no. 117/2013 before Debt Recovery Appellate Tribunal (hereinafter referred to as "the DRAT"), which was dismissed by the said appellate authority by order dated 31-03-2015. It is the said order which is assailed through the writ petition at hand, inter-alia, praying for a writ of certiorari seeking the order of DRAT to be quashed and for a direction to the respondent bank to accept the balance amount under the Tripartite Agreement leading to issuance of Sale Certificate in respect of the subject property in its favour. It may be added here that the Tripartite Agreement, thus referred, was executed on 03-01-2003.

(2.) It is necessary to trace the background facts at some length.

(3.) The third respondent had availed credit facilities from the respondent bank and had mortgaged the subject property in that context. The said third respondent (borrower) failed to repay its liability to the bank which impelled the latter to file the recovery suit that eventually resulted in judgment dated 14-05-1997 granting a decree for Rs. 70,46,669/- with interest @ 17.5% p.a. with quarterly rests. The bank took out execution proceedings in RC No. 336/01. It is during the pendency of the said proceedings that the petitioner entered the scene.