Union Bank of India v. Prayan Ispat and Steel Pvt. Ltd.

Appeal Dy. No. 298/2023 Date: 17.07.2023

Union Bank of India Vs. Prayan Ispat and Steel Pvt. Ltd.

Present: Shri Sandeep Arora, counsel for the appellant,

Learned counsel for the appellant submits that from the order dated 15.02.2023, which is the order impugned in the present case, it is apparent that the property in question was under the possession of the receiver appointed by the Tribunal below itself. It is further contended that the observation of the Tribunal that the respondent-Bank has not taken any action in relation to the recovery certificate for the last five years is not sustainable in view of the fact that the property was under the possession of the receiver, who was appointed by the Tribunal below itself. Therefore, the appellant had no alternative but to proceed under the SARFAESI Act for recovery of the dues. It is also contended that the impugned order of the Tribunal below has prevented the Bank from proceeding by both the modes and has only restricted to take action through recovery certificate, which is against the settled principle of law.

In compliance of the order of this court dated 11.04.2023, the Authorized officer of the Bank is present, therefore, his further presence is exempted.

Issue notice to the respondents by two modes i.e. Registered Post with A.D. and Speed Post. Steps to be taken by the appellant within a week. Affidavit of service along with tracking report be filed by the next date.

List this case on 02.11.2023. Till then the effect and operation of the impugned order be kept in abeyance.

Justice R. D. Khare Chairperson