Indian Overseas Bank v. Sudarshan Ceramics

Appeal Dy. No. 389/2023 Date: 10.04.2023

Indian Overseas Bank Vs. M/s Sudarshan Ceramics Pvt. Ltd.

Present: Shri Maneesh Mehrotra, counsel for the applicant, Heard the learned counsel for the applicant.

It is contended on behalf of the applicant that vide interim order dated 20.09.2022, this Tribunal had directed the parties concerned to maintain the status quo qua the property in question and the next date was fixed for 12.12.2022 for waiver. In pursuance of the aforesaid order, the Tribunal below vide its order dated 05.12.2022 has restrained the applicant-Bank from proceeding with the e-auction sale dated 06.12.2022. Further, the Bank appeared and filed objection before this Tribunal with regard to maintainability of the appeal. It is further contended that on 12.12.2022, when the matter was listed, none had appeared on behalf of the appellant in the aforesaid appeal, therefore, the status quo order, which was granted by this Tribunal, was not extended beyond 12.12.2022, which was duly intimated by the counsel for the appellant-Bank to the Tribunal below and the said restrained order was automatically vacated. It is also contended that vide order dated 12.07.2022, the Tribunal below had directed the appellant to deposit Rs. 1.00 crore within one month, which was not done.

In view of the above, it is contended that the auction sale notice dated 15.12.2022 was challenged by the borrower by filing interim application on 19.12.2022 for staying the auction dated 02.01.2023, to which the Bank filed objection stating that the interim status quo order granted by this Appellate Tribunal was not extended and thus not operative, therefore, the Bank has proceeded for e-auction, which was successfully held and successful bidder has deposited the

entire auction amount of Rs. 4.26 crores with the respondentbank. It is further argued that the Tribunal below thereafter vide order dated 12.01.2023 has restrained the Bank from taking any further action in relation to the auction sale. It is next contended that against the order dated 12.01.2023, whereby the Tribunal below had issued show cause notice to the officer concerned of the Bank and further intended to take action against the officer concerned, the appeal Dy. No. 120/2023 was filed by the Bank before this Tribunal, which was finally disposed off vide order dated 02.02.2023 with liberty to the Bank to file an appropriate application for redressal of its grievance before the Tribunal below. It is also argued that inspite of the fact that the interim status quo order was not extended by this Tribunal, but the Tribunal below is continuously extending the interim order, which is affecting the auction sale of the Bank. It is therefore prayed that the case may be transferred from the DRT, Dehradun to another DRT under the jurisdiction of this Appellate Tribunal.