DINESH KUMAR AGARWAL Vs. CANARA BANK

JUDGEMENT

(1.) This writ petition is filed aggrieved by the conditional order dtd. 15/12/2020 passed by the Debt Recovery Tribunal in IA No.972 of 2020 in SA No.70 of 2020 whereby and whereunder the confirmation of sale in favour of highest bidder i.e. 4th respondent in the auction held on 15/12/2020 was stayed subject to the condition that petitioners deposit a sum of Rs.1.50 Crores in two instalments, pending disposal of the SA No.70 of 2020.

(2.) The brief facts of the case germane for the disposal of the writ petition are as follows:-

(3.) Petitioners 2 and 3 are partnership firms represented by their partners, availed loan of Rs.9.00 Crores and Rs.17.00 Crores respectively from 1st respondent -Bank, to which petitioners 1, 4 to 8 stood as guarantors and pledged certain properties against the said loans. Purportedly, due to vagaries of life, the petitioners could not repay the loan amounts and they became non-performing assets (NPA) which necessitated the 1st respondent-Bank to issue demand notice dtd. 24/7/2017 under Sec. 13(2) of the SARFAESI Act. Thereupon, the petitioners approached the 1st respondent-Bank by way of One-time Settlement (OTS) and the same was permitted by the 1st respondent-Bank on 25/2/2019 for Rs.25.00 Crores for both the loan accounts and set 25/8/2019 as the date for payment of the agreed OTS amount. Thereafter, the petitioners stated to have paid Rs.11,79,55,000.00 (from out of Rs.25.00 Crores) and redeemed four properties, but failed to pay the rest of the amount within the date agreed i.e. by 25/8/2019. The petitioners sought for extension of the time for the payment of rest of the amounts, which was declined and the OTS was withdrawn and intimated the same vide letter dtd. 6/2/2020 to the petitioners. 3. As part of taking further steps, 1st respondent-Bank issued notice on 25/2/2020 which the petitioners challenged in SA No.70 of 2020 and the same is pending. Whileso, the 1st respondent-Bank had issued auction sale notice dtd. 22/9/2020 under Rule 9(1) of the SARFAESI Act against the properties which are subject matter of SA No.70 of 2020 fixing the date of auction on 31/10/2020, aggrieved thereby, the petitioners filed IA No.833 of 2020 seeking stay of the said auction pending disposal of SA No.70 of 2020. At the same time, the petitioners once again given two OTS offers, for Rs.11.00 Crores and for Rs.11.50 Crores, however both the offers were not considered by the 1st respondent- Bank, but the proposed auction to be held on 31/10/2020 was postponed to 18/11/2020 citing pendency of the OTS proposal. Before that could happen, the 1st respondent -Bank issued another auction sale notice dtd. 9/11/2020 postponing auction and fixing the date of auction on 15/12/2020 in which the 1st respondent-Bank sold off all the six properties mortgaged, which are subject matter of SA. No. 70 of 2021 and the auction purchaser has been impleaded as 4th respondent in this case.