STAR TRACE ENGINEERING DIVISION Vs. REGISTRAR

JUDGEMENT

(1.) The brief facts leading to the filing of this Writ Petition are that the writ petitioners are engaged in the business of manufacturing, exporting and supplying massive assemblage of Industrial Separators and Magnetic Equipment. For their business purpose, they had availed Cash Credit facility to a tune of Rs.1,82,24,183.00, Common COVID - 19 Emergency Credit Line facility to a tune of Rs.10,25,369.00 and Guaranteed Emergency Credit Line to a tune of Rs.36,96,715.00, in all totaling to Rs.2,30,45,715.00. In view of default in repayment, the account was classified as Non-Performing Asset (NPA) with effect from 30/9/2021.

(2.) A notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act'), was issued on 8/10/2021 and the notice under Sec. 13(4) of the SARFAESI Act was issued on 11/1/2022. Thereafter, a sale notice was issued under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002 on 18/2/2022 fixing auction on 28/3/2022. The auction was to bring for sale the mortgaged property by fixing a reserve price of Rs.2.58 crores. The respondent Nos.3 and 4, in the Writ Petition, jointly participated in the bid and were the successful bidders for a sum of Rs.3,03,00,000.00. Their highest bid was accepted and they were directed to pay 25% amount on or before 29/3/2022. They were also advised to pay the balance amount of Rs.2,27,25,000.00 within a period of 15 days i.e., on or before 12/4/2022. As per the directive of the second respondent bank, the respondent Nos.3 and 4 paid the 25% of the amount on 29/3/2022.

(3.) It is at this stage, the writ petitioners filed S.A.No.145 of 2022 on the file of the Debts Recovery Tribunal - I, Chennai and on 31/3/2022, the following interim order was passed :-