MANOHAR AGROTECH Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Challenge in this revision petition under Article 227 of the Constitution of India is to order dtd. 1/4/2017 (Annexure P-3), passed by the Debts Recovery Tribunal-III, Chandigarh (hereinafter referred to as 'the DRT-III'), pursuant to order dtd. 20/3/2017 (Annexure P-4), passed by the Debts Recovery Appellate Tribunal, Delhi (hereinafter referred to as 'the DRAT'), dismissing SA No.34 of 2017 (now SA No.321/17), on the ground of the same being premature by holding that without losing physical possession of the secured asset, remedy of appeal under Sec. 17 of The Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act'). was not available despite the fact that the judgments of Hon'ble the Supreme Court and the SARFAESI Act, 2002, provides for remedy even against notice under Sec. 13(4) of SARFAESI Act without making it mandatory to lose physical possession before filing of SA.

(2.) Learned counsel for the parties are ad-idem that the matter in issue is squarely covered by the pronouncement of Hon'ble the Supreme Court in CA No.10873 of 2018 arising out of SLP (Civil) No.5895 of 2018, in case titled as M/s Hindon Forge Pvt. Ltd. and another vs. State of Uttar Pradesh and another, wherein it has been held that a borrower/debtor can approach the Debts Recovery Tribunal under Sec. 17 of the SARFAESI Act at the stage of possession notice referred to in Sec. 13(4) read with Rules 8(1) and 8(2) of the Security Interest (Enforcement) Rules, 2002.

(3.) As regards the issue with regard to the maintainability of the revision petition against the impugned order under Article 227 of the Constitution of India, learned counsel for the petitioners has placed reliance upon the decision of Hon'ble the Supreme Court in Union of India and others vs. Debts Recovery Tribunal Bar Association 2013 (2) SCC 574, holding that High Courts are empowered to exercise their jurisdiction of superintendence under Article 227 of the Constitution of India in order to oversee the functioning of the Debts Recovery Tribunal and Debts Recovery Appellate Tribunal in terms of Sec. 18 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (read in conjunction with Sec. 37 of the SARFAESI Act) which provides that the provisions of the SARFAESI Act as well as rules made thereunder are in addition to, and not in derogation of inter-alia amongst other provisions, of the RDBI Act, 1993.