ARYANET TRUST Vs. DHANLAXMI BANK LTD

JUDGEMENT

(1.) The petitioners, who have availed credit facilities from the 1st respondent-Dhanalakshmi Bank, have invoked Article 227 of the Constitution of India to impugn Ext.P10 order dtd. 5/1/2024 in IA No.510 of 2021 in SA No.382/2018 of the Debts Recovery Tribunal-I, Ernakulam.

(2.) The 1st petitioner is a Trust running educational institutions and other petitioners are its Trustees. The Bank sanctioned Term loans and vehicle loans to the petitioners. When the loan repayments were defaulted and maintenance of credit accounts failed, the Bank invoked the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and issued Sec. 13(2) notice. The Bank issued possession notice and invoked Sec. 14 also. The Advocate Commissioner appointed by the court also issued notice to the petitioners to take over possession of secured assets.

(3.) The Bank later issued a notice of sale by public auction of the secured assets. The petitioners submitted a One Time Settlement proposal. When the Bank refused to consider the OTS proposal and proceeded with sale of the secured assets, the petitioners filed Ext.P1 SA No.382/2018 in the DRT challenging the proceedings. When the Bank issued fresh possession notices, the petitioners filed Ext.P4 IA No.1125/2019 for amendment and Ext.P5 IA No.1124/2019 for stay. As the Bank failed to file counter affidavit, the DRT passed Ext.P6 interim order dtd. 2/7/2019 directing to defer the scheduled sale on 3/7/2019.