Canara Bank v. Ms Susheela Texfab Pvt. Ltd.
Case brief
What is this about?
The Tribunal allowed the appeal and directed the Debts Reconstruction Tribunal (DRT) at Lucknow to expeditiously decide the related substantive appeal within three months, addressing a delay in resolution over defects in the sale notice under the 2002 Rules.
What did the court decide?
Direction to DRT, Lucknow to decide S.A. No. 329/2021 expeditiously, preferably within three months.
What the court decided
Appeal Dy. No. 155/2022 Date: 25.05.2022
Canara Bank Vs. M/s Susheela Texfab Pvt. Ltd.
Present: Shri Maneesh Mehrotra, counsel for the appellant,
Heard the learned counsel for the appellant.
Learned counsel for the appellant submits that the issue before this Tribunal is that in impugned order dated 04.04.2022, it has been held that no clear 15 days’ sale notice has been given in pursuance of the Rule 9(1) of the Security Interest (Enforcement) Rules, 2002. Learned counsel for the appellant further submits that 15 days’ notice was given from the date of issuance, whereas as per Rules, 15 days’ notice is to be given from the date of service.
After arguments, the learned counsel submits that the DRT, Lucknow may be directed to consider and decide the S.A. No. 329/2021 most expeditiously within the time as specified by this Tribunal.
In view of the above, the appeal is finally disposed off with direction to the DRT, Lucknow to consider and decide the S.A. No. 329/2021 most expeditiously in accordance with law preferably within three months from the date of production of this order.
Justice R. D. Khare Chairperson
VN Giri
Issues for consideration
2 issues framed by the court
Whether the 15 days' sale notice under Rule 9(1) of the Security Interest (Enforcement) Rules, 2002 is validly calculated from the date of issuance or the date of service.
Whether the one-month time limit for deciding the appeal under Section 17(8) of the SARFAESI Act has been complied with.
Coram
R. D. Khare
VN Giri
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1 · LD Registrar
- Order 2 — this page · Rajesh Dayal Khare
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