AJAY KUMAR Vs. STATE OF U. P.

JUDGEMENT

(1.) Heard Sri S.K. Mishra, learned counsel for the petitioners, the learned standing counsel for the State-respondents and Sri Vivek Mishra, learned counsel for the respondent No.6.

(2.) Petitioners have filed the present writ petition praying to quash the order dated 02.09.2019 under Section 14 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (the SARFAESI Act) passed by the District Magistrate, Prayagraj and the consequential letter dated 13.10.2020 issued by the Additional District Magistrate (II), Prayagraj. The petitioners have also prayed for a writ, order or direction in the nature of mandamus to direct the respondents not to interfere in peaceful possession of the petitioners over House No.114/B/3, Umarpur Niwa, Sulemsarai, Allahabad during pendency of the SARFAESI Application No.29 of 2020 (Ajay Kumar vs. State Bank of India), pending before the Debt Recovery Tribunal at Allahabad.

(3.) Briefly stated, facts of the present case are that the petitioners are borrowers who took a housing loan of Rs.3,50,000/- on 30.07.2004 from the respondent No.6 - Bank. The petitioners defaulted in payment of instalments. Consequently, notice under Section 13(2) of the SARFAESI Act was issued and thereafter proceedings under Section 13(4) were initiated and an order under Section 14 of the Act was passed by the District Magistrate on 02.09.2019. Consequently, sale notice dated 03.10.2020 was issued and the auction was conducted on 05.11.2019. Aggrieved with the sale notice and the auction, the petitioners filed the SARFAESI Application No.29 of 2020 under Section 17(1) of the Act, before the Debt Recovery Tribunal, Allahabad (the DRT Allahabad) in which the DRT Allahabad passed an order on 15.01.2020, as under: