SOLITHRO PRIVATE LIMITED Vs. DEBT RECOVERY TRIBUNAL-I

JUDGEMENT

(1.) M/S. Axis Structures Private Limited, Hyderabad (hereinafter, 'the borrower company'), availed financial assistance from ING Vysya Bank Limited, Hyderabad, in the form of cash credit facility to the tune of Rs. 10.00 Crore and non-fund based limit for issuance of guarantees/letters of credit to the tune of Rs. 10.00 Crore. These facilities were availed in August, 2010. The borrower company created a security interest in relation to certain immovable property at Vivekananda Nagar Colony, Bagamerry Village, Balanagar Mandal, Ranga Reddy District. Thereafter, ING Vysya Bank Limited modified the terms of the loan sanction, vide letter dated 09.09.2010, requiring the borrower company to create a charge over the land admeasuring Ac.12.27 gts. in various sub-divisions of Sy.Nos.227 and 137 and an extent of Ac.3.15 gts. in Sy.No.228 of Shabhaspally Village, Shivvampet Mandal, Medak District. The borrower company accordingly mortgaged the said properties also as security for repayment of its loans to ING Vysya Bank Limited.

(2.) In course of time, the borrower company's loan account was classified as a non-performing asset and demand notice dated 09.06.2012 was issued by ING Vysya Bank Limited under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, 'the SARFAESI Act'), quantifying the dues as on 31.05.2012 at Rs. 10,70,12,208.20 ps. Possession notice dated 14.08.2012 was thereafter issued by ING Vysya Bank Limited under Section 13(4) of the SARFAESI Act read with Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 (for brevity, 'the Rules of 2002'). Two attempts to sell the secured assets having failed, the third auction sale notice dated 21.11.2013 was published by ING Vysya Bank Limited under Rule 9(1) of the Rules of 2002 fixing the date of auction sale as 27.12013. M/s. Solithro Private Limited, Hyderabad, emerged the highest bidder for the land admeasuring Ac.16.02 gts., along with plant & machinery and buildings, in Sy.Nos.227, 137 and 228 of Shabhaspally Village, Shivvampet Mandal, Medak District, with a bid of Rs. 2,60,99,658/-. Sale certificate dated 20.01.2014 was issued by ING Vysya Bank Limited to the auction purchaser upon payment of the total sale consideration. The said sale certificate was registered by the Sub-Registrar, Narsapur, Medak District, as Document No.650 of 2014, on 07.02014.

(3.) Prior thereto, Securitization Application No.120 of 2013 was filed by the borrower company before the Debts Recovery Tribunal-I, Hyderabad, under Section 17(1) of the SARFAESI Act, with the following prayer: