SRI VARATHARAJ SILKS Vs. FEDERAL BANK LTD.

JUDGEMENT

(1.) The petitioner has filed the above Writ Petition to issue a Writ of certiorarified mandamus to call for the records relating to the order dtd. 29/10/2018 made in AIR(SA). No. 470 of 2018 passed by the Debt Recovery Appellate Tribunal, Chennai, confirming the order of the Debts Recovery Tribunal, Coimbatore dtd. 16/7/2018 made in I.A. No. 1156 of 2018 in I.A. No. 533 of 2018 in S.A. No. 379 of 2017 and to quash the same and to direct the petitioner to deposit the balance of Rs.4,75,000.00 in S.A. No. 379 of 2017 on the file of the Debts Recovery Tribunal, Coimbatore within a stipulated time.

(2.) It is the case of the petitioners that they availed loan from the 2nd respondent - Bank on 19/7/2011 by mortgaging the property. Since they defaulted in re-paying the loan, the Bank initiated proceedings under the SARFAESI Act. Thereafter, the petitioners filed SARFAESI Appeal in S.A. No. 379 of 2017 before the Debts Recovery Tribunal, Coimbatore challenging the possession notice dtd. 20/11/2017. In the said appeal, the petitioners filed an application in I.A. No. 533 of 2018 to stay all further proceedings. By order dtd. 5/3/2018, the Debts Recovery Tribunal granted an order of interim injunction against the respondent - Bank not to confirm the sale, subject to payment of Rs.12.00 lakhs in 2 installments of Rs.6.00 lakhs each. As per the order dtd. 5/3/2018, the petitioners were directed to pay the 1st installment of Rs.6.00 lakhs on or before 28/3/2018 and the 2nd installment on or before 5/5/2018.

(3.) According to the petitioners, they paid the 1st installment of Rs.6.00 lakhs before 28/3/2018 and paid only Rs.1,75,000.00 towards the 2nd installment on 2/5/2018. Therefore, for making payment of the balance amount of Rs.4,25,000.00, the petitioners filed an application in I.A.No.1156 of 2018 in I.A.No.533 of 2018 seeking for extension of time by two months. In the affidavit filed in support of the petition, the petitioners have stated that the 3rd petitioner, on 5/4/2018, suddenly fell ill and was admitted in PSG Hospital, Coimbatore and underwent treatment upto 10/4/2018 and thereafter, is taking continuous treatment till this date. In these circumstances, the petitioners have stated that they were not in a position to make the balance payment of Rs.4,25,000.00 within the stipulated time by the Debts Recovery Tribunal. The said application was contested by the respondent - Bank and the Debts Recovery Tribunal, by order dtd. 16/7/2018, dismissed the petition. Aggrieved over the same, the petitioners preferred an appeal in AIR (SA).No. 470 of 2018 before the Debt Recovery Appellate Tribunal, Chennai and the Appellate Tribunal also, by order dtd. 29/10/2018, dismissed the appeal. Aggrieved over the same, the petitioners have filed the above Writ Petition.