Canara Bank v. M/ S R G S Footwear and Ors.

Appeal Dy. No. 262/2022 Date: 07.06.2022

Canara Bank Vs. M/s R. G. S. Footwear & Ors.

Present: Shri K. K. Tiwari, counsel for the appellant-Bank, Shri R. G. Goswami, counsel for the respondent-Borrower,

Heard the learned counsels for the parties.

Learned counsel for the appellant submits that the order impugned has been passed by the DRT, Allahabad on 31.05.2022, whereby the order dated 20.12.2021 passed by the ADM (F&R), Agra has been set aside on the ground that the S.A.-applicant was not given any opportunity before passing the said order relying upon a judgment passed by the Hon’ble High Court, which has been cited in the said order and the ADM(F&R), Agra has been directed to consider the matter. Further, the respondent-Bank has also been directed to handover the physical possession of the property in question within 7 days to the S.A. applicant. The learned counsel for the appellant further submits that the possession of the property in question has already been taken, therefore, this part may be stayed.

Learned counsel for the respondent-borrower submits that the application under section 17 of the SARFAESI Act was filed by the respondent-borrower, notice of which has been given to the Bank on 26.05.2022, but despite being listed the case on 31.05.2022, the possession has been taken by the Bank on 27.05.2022, although the matter was fixed before the DRT concerned on 31.05.2022. It is contended that the challenge was only to the extent that the ADM(F&R), Agra passed the order without affording any opportunity of hearing to the opposite party. Therefore, the order, which is impugned in the present appeal, has no infirmity and is in accordance with law.

He further states that the account of the borrower has been declared as NPA in gross violation of the RBI guidelines, therefore, the Tribunal below has rightly set aside the order passed by the ADM(F&R), Agra and no interim order is required to be passed.