Pramod Kumar Vs Debt Recovery Tribunal Lucknow Bench… — Banking and Recovery | Allahabad HC (2025)

Pramod Kumar Vs Debt Recovery Tribunal Lucknow Bench… — Banking and Recovery | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Petition disposed of with liberty to the petitioner to approach opposite party no. 2 (Noida Commercial Co-operative Bank Ltd., Ghaziabad) through its competent officer for payment of entire dues; any such application to be considered and decided expeditiously prior to finalization of the auction fixed for 24.02.2025.

Issue for consideration

Whether the Debt Recovery Tribunal should be directed to expeditiously dispose of Securitization Application No. 876 of 2022. +2 more

Ratio / Principle

Liberty is granted to the petitioner to approach opposite party no. 2, the Noida Commercial Co-operative Bank Ltd., Ghaziabad, through its competent officer for payment of the entire dues against him.

Key takeaways

In case any such application for payment of dues is made, the bank may consider and decide it expeditiously prior to finalization of the auction.ratio¶14

Detailed headnote1 paragraphs

Allahabad High Court, Lucknow Bench (Manish Mathur, J.), Matter under Article 227 No. 1017 of 2025, decided 21.02.2025 (Neutral Citation 2025:AHC-LKO:11336). The petitioner-borrower, against whom an order under the U.P. Co-operative Societies Act, 1965 and orders dated 13.10.2022 and 11.07.2022 under Section 13(4) of the SARFAESI Act had been passed, had challenged them before the Debt Recovery Tribunal, Lucknow Bench under Section 17 (Securitization Application No. 876 of 2022, pending). His Article 227 petition sought expeditious disposal of the securitization application, a direction to Noida Commercial Co-operative Bank Ltd. to receive dues in equal lenient installments, and a prohibition on simultaneous proceedings under the two statutory schemes; meanwhile the bank had issued an auction notice dated 17.01.2025 fixing 24.02.2025 as the auction date. On the petitioner's stated readiness to pay the outstanding amount, the Court disposed of the petition granting him liberty to approach the bank's competent officer for payment of the entire dues, directing that any such application be considered and decided expeditiously prior to finalization of the auction. No finding was rendered on the merits of the dual-proceeding or expeditious-disposal prayers.

Neutral Citation No. - 2025:AHC-LKO:11336

Court No. - 19

Case :- MATTERS UNDER ARTICLE 227 No. - 1017 of 2025

Petitioner :- Pramod Kumar

Respondent :- Debt Recovery Tribunal Lucknow Bench Lko. And Another

Counsel for Petitioner :- Nikhil Srivastava,Abhishek Upadhyay,Piyush Raj Verma,Sachin Upadhyay

Hon'ble Manish Mathur,J.

Heard learned counsel for petitioner. In view of order being passed, notice to opposite parties stands dispensed with.

Petition has been filed seeking a direction to Debt Recovery Tribunal for expeditious disposal of Securitization Application No. 876 of 2022. Further prayer has been made seeking a direction to the bank concerned being the Noida Commercial Co-operative Bank Ltd. to receive the due amount from petitioner for equal lenient installments. Prayer has also been made seeking a prohibition to opposite parties not to proceed under two different statutory schemes such as U.P. Co-operative Societies Act, 1965 and the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Learned counsel for petitioner submits that in view of arrears of loan outstanding, order against petitioner had been issued under the U.P. Co-operative Societies Act, 1965 and order dated 13.10.2022 and 11.07.2022 passed under Section 13 (4) of the Securitisation & Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002.

It is submitted that the aforesaid order and notice were challenged by petitioner before the Debt Recovery Tribunal

under Section 17 of the Act which is still pending consideration but in the meantime the bank has already been issued auction notice dated 17.01.2025 fixing 24.02.2025 as the date of auction.

On the basis of instructions, learned counsel for petitioner submits that petitioner is ready and willing to pay the outstanding amount against him.

In view of such submission being made, liberty is granted to petitioner to approach the opposite party no. 2 i.e. Noida Commercial Co-operative Bank Ltd., Ghaziabad through its competent officer for payment of entire dues against him. In case any such application is made, the same may be considered and decided expeditiously prior to finalization of the auction.

In view of aforesaid directions, petition stands disposed of.

Order Date :- 21.2.2025 Satish

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