Disposed

Panna Lal and Others v. Cholamandalam Investment and Finance Company Ltd. & Anr.

Delhi HC22 Feb 2024W.P.(C)/2682/2024

Case brief

AI extract

What is this about?

Petitioners challenged DRT orders rejecting stay applications against e-auction and physical possession of their mortgaged property by a financial institution. As third-party rights had arisen from the auction and appeal was unavailable, the Court directed no further coercive steps until 15 March 2024, subject to filing an appeal, leaving contentions open.

What did the court decide?

No further coercive steps against petitioners prior to 15.03.2024, subject to filing appeal before DRAT on or before 01.03.2024; DRAT directed to decide interim application.

Panna Lal and Others Vs Cholamandalam Investment and… — Banking and Recovery | Delhi HC (2024)

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$~48

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 2682/2024, CM APPL. 10947/2024 & CM APPL. 10948/2024

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PANNA LAL AND OTHERS ..... Petitioner

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Through: Mr. Aravindh S. with Mr. Puneet K. Verma, Advocates

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versus

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CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD & ANR. ..... Respondent Through: Mr. Kirti Uppal, Senior Advocate with Mr. Navneet Thakran, Ms. Riya Gulati, Mr. Siddharth Chopra and Mr. Aditya Raj, Advocates

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% Date of Decision: 22^nd February, 2024

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CORAM:

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HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

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JUDGMENT

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MANMOHAN, ACJ : (ORAL)

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Present writ petition has been filed challenging the orders dated 25^th January, 2024 and 13^th February, 2024 passed by the Debt Recovery Tribunal-I, Delhi in S.A. no. 19/2024 as well as the order dated 25^th January, 2024 passed by the learned CMM, Saket Court and the E-Auction sale notice dated 04^th January, 2024.

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By way of the order dated 25^th January, 2024 passed by DRT-I, the securitization application filed by the Petitioners for restraining the

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Signature Not Verified

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Digitally Signed By:JASWANT SINGH RAWAT Signing Date:23.02.2024 19:10:12

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W.P.(C) 2682/2024

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Page 1 of 3

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Respondent-FI from conducting the auction of the mortgaged property scheduled for 25^th January, 2024 was rejected. By way of the order dated 13^th February, 2024 passed by DRT-I, the application filed by the Petitioners for restraining the Respondent-FI/Court Receiver from taking physical possession of the mortgaged property scheduled for 22^nd February, 2024 was rejected. Vide order dated 25^th January, 2024 passed by the learned CMM, Saket Court, a Receiver was appointed to take possession of the mortgaged property in question.

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Learned counsel for the Petitioners states that Petitioners have availed two loans of total amount of Rs. 1,28,91,392 against equitable mortgage of property bearing no. F-11, Third Floor, Green Park Extension, Delhi-110016 measuring 200 sq. yds. and belonging to the Petitioner No. 2. He further states that out of the total debt, the Petitioners have repaid an amount of Rs. 1,34,28,651 till date.

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Learned counsel for the Petitioners states that the Petitioners had approached the Respondent-FI multiple times with request to settle the pending claims under the OTS scheme. He, however states that such requests were rejected by the officials of the Respondent-FI, with an intent to grab the property of the Petitioners under the garb of recovery of the dues. 5. He states that even as of today, the Petitioners are willing to pay a sum of Rs. 40,00,000/- immediately and the balance amount of Rs. 1,06,64,343 /- under the foreclosure notice within fifteen days. He also states that the Petitioners have not been able to avail the alternative efficacious remedy of an appeal as the Chairperson, DRAT is on leave.

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Learned senior counsel for the Respondent states that the property has already been auctioned and sold to Mrs. Yethesh Choudhary, W/o Mr.

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Signature Not Verified

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Digitally Signed By:JASWANT SINGH RAWAT Signing Date:23.02.2024 19:10:12

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W.P.(C) 2682/2024

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Page 2 of 3

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Brham Prakash Choudhary, Address: T-6, 1^st Floor, Green Park Ext. Hauz Khas, Delhi-110016 on 25^th January, 2024. He states that as third-party rights have already been created, the Respondent is not in a position to make any statement.

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As the Chairperson, DRAT is on leave till 11^th March, 2024, this Court directs that Respondent shall not take any further coercive steps against the Petitioner prior to 15^th March, 2024 provided the Petitioners file their appeal before the DRAT on or before 01^st March, 2024. This Court directs the Chairperson, DRAT to decide the Petitioners interim application, if not the entire appeal, in accordance with law prior to 15^th March, 2024. With the aforesaid directions, the present writ petition stands disposed of. Pending applications are disposed of. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.

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ACTING CHIEF JUSTICE

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MANMEET PRITAM SINGH ARORA, J

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FEBRUARY 22, 2024/ msh

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Signature Not Verified

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Digitally Signed By:JASWANT SINGH RAWAT Signing Date:23.02.2024 19:10:12

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W.P.(C) 2682/2024

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Page 3 of 3

Panna Lal and Others v. Cholamandalam Investment and Finance Company Ltd. & Anr.

Case brief

What is this about?

What did the court decide?

Panna Lal and Others v. Cholamandalam Investment and Finance Company Ltd. & Anr.

Case brief

What is this about?

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