Disposed

Idfc First Bank Ltd., Nagpur Thr. One of Its Asst. General Manager v. Arihant Transport Agency, Proprietor, Shri. Nishat S/O Pankaj Babaria and Another

Bombay HC18 Apr 2024WP/1739/2024

Case brief

AI extract

What is this about?

Bank sought directions for early disposal of its Order 7 Rule 11 CPC application in a borrower's suit challenging a SARFAESI sale notice and auction. The High Court disposed of the petition directing the trial court to decide the application within one month, noting SARFAESI bars such suits.

What did the court decide?

Trial court directed to dispose of the petitioner's Order 7 Rule 11 CPC application within one month.

Idfc First Bank Ltd., Nagpur Thr. One of Its Asst… — Banking and Recovery | Bombay HC (2024)

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2024:BHC-NAG:3003

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1 6.WP.1739-2024.odt

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH AT NAGPUR

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WRIT PETITION NO. 1739 OF 2024

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( IDFC FIRST BANK LIMITED, Thr. Its Asst. General Manager Vs.

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Arihant Transport Agency, Proprietor Shri Nishit S/o Pankaj Babaria & Anr. )

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Office Notes, Office Memoranda Court's or Judge's orders of Coram, Appearances, Court's orders or directions and Registrar's orders

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Mr. M. Anilkumar, Advocate for the Petitioner.

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CORAM: BHARAT P. DESHPANDE, J.

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DATED : 12^th MARCH, 2024

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Heard Mr. Anilkumar, learned counsel for the

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petitioner.

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2 . The order which is proposed in the present petition, no notice to the respondents is necessary.

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3 . Mr. Anilkumar, learned counsel for the petitioner, would submit that the respondent Nos. 1 and 2/borrowers filed a suit against the petitioner for declaration, permanent/perpetual injunction claiming relief that a notice dated 09.12.2023 and sale of the immovable property under the Securitisation And Reconstruction Of Financial Assets And Enforcement of Security Interest Act, 2002 (for short the “SARFAESI Act) to be declared as null and void. He submits, that except the word fraud, there are no proper pleadings in the plaint so as to exercise the jurisdiction of the Civil Court

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2 6.WP.1739-2024.odt

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and hence the petitioner filed an application under Order 7 Rule 11 of the Code of Civil Procedure on 28.12.2023. The petitioner has argued on the said application on 03.02.2024 and thereafter the respondents/plaintiffs partly argued the said application and even today the matter is fixed for further arguments. He submits, that the respondents/plaintiffs are not completing their arguments and even though the auction is over on 02.01.2024, the proposed purchasers put a condition on the deal of the auction subject to the decision of the suit. He submits, that the bank is unable to complete the auction proceedings since the suit is filed and it is delayed only on the ground of application under Order 7 Rule 11 of the Code of Civil Procedure.

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4 . Since the application is already filed and the petitioner has completed his argument, the learned Trial Court could be directed to dispose of such application as early as possible and within a period of one month from today. The learned Trial Court should keep in mind that the provisions of SARFAESI Act, clearly prohibits any proceedings to be filed unless the conditions are satisfied. Accordingly, the petition could be disposed of by directing the learned Trial Court to expeditiously dispose of the application filed by the petitioner under Order 7 Rule 11 of the Code of Civil Procedure and in any case within a period of one month from today.

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5 . The petition stands disposed of in view of the above terms. No costs.

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3 6.WP.1739-2024.odt

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6 . The parties shall act on the authenticated copy of

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this order.

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7 . Pending application/s, if any, shall stand disposed of accordingly.

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(BHARAT P. DESHPANDE, J.)