V. ASHOK KUMAR Vs. SYNDICATE BANK

JUDGEMENT

(1.) This writ petition is filed seeking a mandamus to declare the order passed by the Debt Recovery Tribunal in S.A.No.172 of 2011 dated 05.10.2016; the order passed in I.A.No.1451 of 2016 in S.A.No.172 of 2011 dated 22.06.2016 quashing the letter of the 1st respondent-Authorised Officer dated 08.06.2016 forfeiting 25% of the bid amount for the auction held on 04.07.2012; failure to deposit the balance 75% of the sale price in terms of the forfeiture notice dated 17.07.2012 by the 3rd respondent; and the further proceedings dated 24.08.2012 directing the 3rd respondent to deposit 75% of the balance sale consideration after four years without notice and hearing the petitioners and passing orders leading upto the dismissal of S.A.No.172 of 2011, as illegal, violative of principles of natural justice and as contrary to law.

(2.) The facts, to the limited extent necessary, are that the petitioners herein (brothers) guaranteed a loan, taken by M/s.Renown Industries Private Limited from the 2nd respondent-bank for manufacturing aluminium composite panels, to the extent of their property. The borrower-company had immovable properties of an extent of Ac.1.04 cents in Survey No.330/A1 and A2 of Chandampeta Village, Sankarampet Mandal, Medak District; an extent of Ac.1.04 cents in Survey No.301/A1 and A2 of the same village; and Ac.2.08 cents in the name of the Managing Director of the borrower-company in Survey No.330/A1 of the same village. The borrower had constructed a factory on the said land erecting sheds covering an extent of 34,500 square feet. After the death of the Managing Director in 2010, a demand notice dated 04.12.2010 was issued by the 2nd respondent-bank under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "the SARFAESI Act") and was published in the Indian Express English Daily on 09.01.2011. The petitioners furnished a reply thereto on 25.02.2011, under Sec. 13(3A) of the SARFAESI Act, and it is their case that, even without an order being passed thereupon, a possession notice dated 20.05.2011 under Sec. 13(4) of the SARFAESI Act was published in both Telugu Daily and English Daily on 26.05.2011; the properties published in the Telugu Daily were at variance with those published in the English Daily; in the Telugu Daily, the properties of the company and the name of the Managing Director were absent; and this was followed by an auction notice dated 31.05.2011 questioning which the petitioners had filed S.A.No.172 of 2011.

(3.) Thereafter, the Debt Recovery Tribunal passed an order on 01.07.2011 staying the sale until further orders on condition that the petitioners deposited Rs. 12,00,000.00 within eight weeks. However, the petitioners failed to deposit the said amount as directed by the Debt Recovery Tribunal, and were able to deposit only Rs. 2,00,000.00. A fresh auction notice dated 28.05.2012 was issued fixing the auction sale on 04.07.2012. The petitioners questioned the said auction notice in I.A.No.819 of 2012 wherein they also sought extension of time to deposit the balance amount of Rs. 6,00,000.00. The petitioners claim to have deposited Rs. 6,00,000.00 by 03.07.2012. They filed W.P.No.20169 of 2012 which was disposed of on 04.07.2012 directing the Debt Recovery Tribunal to dispose of all the applications filed by the petitioners in S.A.No.172 of 2011, as expeditiously as possible, within a period of two weeks. Since the Debt Recovery Tribunal did not take up the said applications, the petitioners filed W.P.No.21714 of 2012 and, by order dated 18.07.2012, this Court directed the bank not to confirm the sale in respect of the properties of the petitioners without leave of the Court. The writ petition was disposed of by order dated 14.08.0212 directing the 2nd respondent-bank not to confirm the sale without leave of the Debt Recovery Tribunal, and making the sale subject to the result of S.A.No.172 of 2011. This Court observed that the appeal filed by the petitioners shall be disposed of by the Debt Recovery Tribunal at an early date.