PRADEEP SURI Vs. DHANI LOANS AND SERVICES LIMITED

JUDGEMENT

(1.) This appeal by judgment debtor is directed against the impugned order dtd. 11/09/2023 passed in Writ Petition No.22626/2023. Relevant facts for disposal of the appeal are to the following effect: Respondent No.1 issued notice under Sec. 13(2) of SARFAESI Act to the appellant/judgment debtor on 03/11/2022. The appellant challenged the said notice before the DRT on 13/12/2022 alongwith the interim application.

(2.) After notice to the respondents, the Tribunal passed the interim order on 06/02/2023 whereby subject to deposit of Rs. One Crore in four equal installments within two months, proceedings under Sec. 13(4) were stayed. However, the said order was modified on 09/03/2023 to the effect that auction proceedings shall be subject to the final outcome of pending proceedings. On 21/07/2023, DRT passed another order and orders dtd. 06/02/2023 and 09/03/2023 were discontinued. Thereafter, in view of the aforesaid order, Collector has passed the impugned order on 18/08/2023. It appears that thereafter, the appellant again moved an application for interim protection and upon hearing learned counsel for the parties, DRT reserved the case for orders on 17/08/2023 and on 19/10/2023 has passed the order of maintaining status quo by the parties. The Writ Court has passed the impugned order on 11/09/2023 justifying the order passed by the Collector on 18/08/2023.

(3.) In the aforesaid factual backdrop, Shri Bahirani submits that Writ Court as well as Collector have fallen in error having subjected the appellant to the rigor of order passed under SARFAESI Act since proceedings before DRT were pending. In all fairness, Collector should have stayed away from passing the order under Sec. 14 of SARFAESI Act, therefore, Writ Court ought to have set aside the order passed by the Collector. Per contra, Shri Raghuvanshi on advance notice submits that interim orders dtd. 06/02/2023 and 09/03/2023 were not continued by the DRT on 21/07/2023, therefore, no fault can be found with the authority and jurisdiction of the Collector while passing the order on 18/08/2023. Subsequent interim order of 19/10/2023 was not in existence either at the stage Collector passed the order under Sec. 14 of SARFAESI Act or when Writ Court disposed of the petition on 11/09/2023, therefore, on the strength of the order passed on 19/10/2023, no exception can be taken to the proceedings before the Collector or impugned order passed by Writ Court.