SYNDICATE BANK Vs. THE DEBT RECOVERY TRIBUNAL

JUDGEMENT

(1.) The petitioner in CWJC No. 24462 of 2013 is the Syndicate Bank and who has invoked the extraordinary writ jurisdiction of this Court under Article 226 of the Constitution of India, to question the order dated 03.10.2013 passed by the Chairperson, Debt Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the 'Appellate Tribunal'), in Miscellaneous Application No. 345 of 2013 whereby the 'Appellate Tribunal' has reduced the balance outstanding against the respondent no. 3 by near about Rs. 22 lakhs. The bank in the process has also questioned the order dated 26.3.2012 passed by the Presiding Officer, Debt Recovery Tribunal, Patna (hereinafter referred to as the 'Tribunal') in S.A. No.133 of 2011 whereby the 'Tribunal' has set aside the auction held under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act') and the Rules framed thereunder.

(2.) The petitioner in the second writ petition arising from CWJC No. 64 of 2014 is the auction purchaser and who has also prayed for issuance of a writ in the nature of certiorari for quashing the order dated 03.10.2013 passed in Miscellaneous Application No. 345 of 2013 arising from Appeal (T) No. 1 of 2013 by the 'Appellate Tribunal' and while questioning the same the said petitioner also seeks a declaration that the initiation and continuance of proceedings under Sections 17 and 18 of the 'SARFAESI Act' is without jurisdiction in view of the statutory provisions as well as the law laid down by the Supreme Court in the case of Mardia Chemicals Ltd. Vs. Union of India since reported in (2004) 4 SCC 311. Since the writ petitioner in each of the two writ petitions seeks to question the order passed by the 'Appellate Tribunal' hence the two writ petitions have been heard together and with the consent of the parties are being finally disposed of at the stage of admission itself.

(3.) Before I proceed to consider the arguments advanced on behalf of the parties I deem it necessary to place on record the relevant events leading to the final order under challenge. For the sake of convenience I shall be referring to the pleadings and Annexures as occurring in CWJC No.24462 of 2013 unless clarified with specific reference to the 2nd writ petition.