Remanded

M/s Bhoje Power Control System v. Punjab National Bank

DRAT18 Jan 2024

Case brief

AI extract

What is this about?

Appeal S.A. No. 7952/2023 filed under section 18 of the SARFAESI Act by M/s Bhoje Power Control System against an interim order by the DRT, Lucknow rejecting interim relief. The single judge granted status quo of the mortgaged property pending the disposal of the interim application by the DRT below.

What did the court decide?

Status quo regarding the property maintained pending disposal of the interim application by the DRT below.

M/s Bhoje Power Control System versus Punjab National Bank — Banking and Recovery | DRAT (2024)

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Appeal Dy. No. 1552/2023 Date: 18.01.2024

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M/s Bhoje Power Control System & Ors. Vs. Punjab National Bank

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Present: Shri Sandeep Arora, counsel for the appellant,

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Heard the learned counsel for the appellant.

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The present appeal has been filed under section 18 of the SARFAESI Act against the interim order dated 06.11.2023 passed by the DRT, Lucknow in S.A. No. 799/2023, whereby the interim relief application of the appellant has been rejected.

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Learned counsel for the appellant has referred to annexure no. 13 at page no. 173 of the memo of appeal, which is an order dated 10.10.2023 of the Debts Recovery Tribunal, Lucknow. The said order records that the respondent-Bank had appeared and stated that pursuant to the impugned sale notice, the Bank has not received any bid, therefore, interim relief application of the appellant has become infructuous. The learned counsel has further drawn attention of this court to the Annexure No.1 at page-D of the memo of appeal, which is statement of calculation of delayed period interest. On the bottom of the said statement, the respondent-Bank has recorded that the property mortgaged in account has been successfully sold in e-auction dated 21.09.2023 for Rs. 123.80 lacs and the sale has been confirmed. The learned counsel also contends that in the aforesaid order itself, it is also recorded that “the counsel for the applicant stated that sale notice is not as per appendix-IV-A and despite depositing of dues, the Bank has sold the property”.

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As such the learned counsel for the respondent-Bank has misled the Tribunal below for not granting any interim relief to the appellant.

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Learned counsel also submits that the notice, which was sent to the appellant, is defective as outstanding dues has not been correctly shown and it is contended that the notice was sent to Shri Sunil, who was not borrower and also contended that 15 days’ notice was not given to the appellant. It is lastly contended that the entire settlement amount including interest component has been deposited by the appellant, but despite the same, the property has been auctioned, hence the said action is bad in law and the possession of the property in question is still with the appellant, therefore, it is prayed that till the next date of listing, status quo with regard to the property in question as its exists today may be granted to the appellant in the interest of justice.

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Considering the facts and circumstances of the case, I deem it appropriate to grant some interim relief to the appellant. The present appeal is filed against the interim order, therefore, the same is disposed off finally with expectation that the Tribunal below shall consider and decide the interim application expeditiously, preferably on the next date fixed before it. Till then or the disposal of the interim application, whichever is earlier, status quo with regard to the property in question as it exists today shall be maintained by all the parties concerned.

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Justice R. D. Khare Chairperson

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VN Giri

M/s Bhoje Power Control System v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

M/s Bhoje Power Control System v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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