Sheela Rastogi and Another Vs Debts Recovery… — Banking and Recovery | Allahabad HC (2024)

Sheela Rastogi and Another Vs Debts Recovery… — Banking and Recovery | Allahabad HC (2024)

What the court decided

AI extract

Outcome

Direction to the Debts Recovery Tribunal, Lucknow to consider and finally decide the petitioner's pending Section 17 application (S.A. No. 195 of 2023) and any maintainability objection on the date fixed (08.04.2024) itself, or failing that within the next two weeks, with full opportunity of hearing and without unnecessary adjournments; merits not examined by this Court.

Issue for consideration

Whether the Debts Recovery Tribunal at Lucknow should be directed to expeditiously dispose of the petitioner's pending Application under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (S.A. No. 195 of 2023).

Court's answer

The Court was of the opinion that no gainful purpose would be served in keeping the petition pending and that the ends of justice would be served by directing the Debts Recovery Tribunal to consider and finally decide the pending application.

Ratio / Principle

The Debts Recovery Tribunal was directed to consider and finally decide the petitioner's pending application as well as any objection regarding maintainability on the date fixed itself.

Key takeaways

If decision on the date fixed is not possible, the application must be decided at least within the next two weeks, affording full opportunity of hearing to the parties but without granting any unnecessary adjournment to either of the parties.ratio¶15
The Court expressly did not examine the case of either party on merits; the DRT concerned is to decide the matter strictly in accordance with law.ratio¶16

Detailed headnote1 paragraphs

Petition under Article 227 (Matters Under Article 227 No. 931 of 2024) before the High Court of Judicature at Allahabad, Lucknow Bench (Jaspreet Singh, J.), seeking expeditious disposal of S.A. No. 195 of 2023 (Sheela Rastogi and Another Vs. Punjab National Bank), an application under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 pending before the Debts Recovery Tribunal, Lucknow since 24th January, 2023. Counsel for the Bank informed the Court that the secured asset had already been sold in public auction on 28th December, 2023 and the sale certificate issued on 16th January, 2024, and that the matter stood listed before the DRT on 08th April, 2024. Holding that no gainful purpose would be served in keeping the petition pending, the Court directed the DRT to consider and finally decide the pending application and any objection regarding maintainability on the date fixed itself, or at least within the next two weeks, affording full opportunity of hearing without unnecessary adjournments, while making clear that it had not examined the merits and the DRT shall decide strictly in accordance with law. Petition disposed of (order dated 13.3.2024).

Neutral Citation No. - 2024:AHC-LKO:21954

Court No. - 8

Case :- MATTERS UNDER ARTICLE 227 No. - 931 of 2024

Petitioner :- Sheela Rastogi And Another Respondent :- Debts Recovery Tribunal, Lko. And Another Counsel for Petitioner :- Km.Rachna Mishra,Anil Kumar Verma,Mohammad Sohail Khan

Counsel for Respondent :- Arpit Gupta,Brajendra Amiy,Manu Dixit,Tarun Ojha

Hon'ble Jaspreet Singh,J.

Heard learned counsel for the petitioners.

In furtherance of the order dated 26.02.2024, learned counsel for the petitioners has filed a supplementary affidavit which is taken on record.

The Court has heard the learned counsel for the petitioners and Sri Manu Dixit, learned counsel for the respondent no. 2.

By means of the instant petition, the petitioner seeks expeditious disposal of his Application under Section 17 of the Securitisation and Reconstruction of Financial assets and Enforcement of Security Interest Act, 2002 registered as S.A. No. 195 of 2023 (Sheela Rastogi and Another Vs. Punjab National Bank) pending before the Debts Recovery Tribunal at Lucknow.

The learned counsel for the Bank has submitted that the property in question which was the secured asset has already been sold in a public auction on 28th December, 2023 and the sale certificate has also been issued on 16th January, 2024.

He further submits that the aforesaid S.A. Application is pending since 24th January, 2023 and it is at a later stage that the application for early hearing has been moved.

It has further been submitted that now the matter is listed before the Debts Recovery Tribunal on 08th April, 2024.

Considering the facts and circumstances and from the perusal of the material on record, this Court is of the opinion that no gainful purpose will be served in keeping the aforesaid petition pending rather ends of justice can be served by directing the Debts Recovery Tribunal to consider and finally decide the

pending Application of the petitioner as well as any objection regarding maintainability if raised on the date fixed itself and in case if the same is not possible then at least within the next two weeks, affording full opportunity of hearing to the parties, but without granting any unnecessary adjournment to either of the parties.

It is made clear that the Court has not examined the case of either of the parties on merits and the DRT concerned shall decide the matter strictly in accordance with law.

With the aforesaid, the petition is disposed of .

Order Date :- 13.3.2024 Asheesh

Digitally signed by :- ASHEESH KUMAR High Court of Judicature at Allahabad, Lucknow Bench