Remanded

Union Bank of India v. Ms S L N Tobaccos

DRAT5 Jan 2024MISC APPEAL/23/2023

Case brief

AI extract

What is this about?

The Tribunal disposed of an appeal against the DRT’s stay on the confirmation of an immobile asset auction. The Tribunal directed the DRT to decide the pending stay application within eight weeks and ordered the impleadment of the auction purchaser as a respondent.

What did the court decide?

Directed DRT to decide pending stay application within eight weeks; ordered impleadment of auction purchaser as respondent in ten days.

Union Bank of India versus Ms S L N Tobaccos — Execution and Attachment | DRAT (2024)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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(Misc. Appeal No. 23 of 2023)

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(Arising out of S.A. No. 208 of 2023 in DRT-Visakhapatnam)

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA

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CHAIRPERSON

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The Authorised Officer, Union Bank of India, Kandakur -2 Branch, Near Indane Gas Office, Pamur Road, Kandukur, Prakasam District, Pin Code -523105, Andhra Pradesh

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The Branch Manager, Union Bank of India, Kandakur-2 Branch, Near Indane Gas Office, Pamur Road, Kandukur, Prakasam District Pin Code -523105, Andhra Pradesh

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…Appellants

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-Versus-

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M/s. S.L. N. Tobaccos, Rep by its Prop. Mr. Gurram Malyadri, S/o. Narasimham, H. No. 17-1-7/1, Gayatrhi Nagar, Pamur Road, Kandukur, Kandukur Town & Municipality, Prakasam District (AP) - 523105

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… Respondents Counsel for the parties Mr. P.K. Mukherjee, Learned Counsel, for the Appellant Mr. Nemani Srinivas, Learned Counsel for the Respondent.

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JUDGMENT : On 5^th January, 2024

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THE APPELLATE TRIBUNAL :

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Instant appeal has arisen against an order dated 25.04.2023 in SA. No. 208 of 2023 passed by Ld. DRT Visakhapatnam whereby the Learned DRT declined to stay

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the auction to be held on 26.04.2023 but then stayed the confirmation of auction sale till further orders.

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2. Heard the Learned Counsel for the parties and perused the record.

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3. Learned Counsel for the Appellant submits that the only grievance of the Appellant is regarding stay of confirmation of auction sale which was conducted on 26.04.2023. It is further submitted that the reserve price was fixed on the basis of the report of the valuer. Earlier also the reserve price was fixed on the basis of the report of the valuer. But the auction could not be held. Thereafter fresh e-auction sale notice was issued on 05.04.2023 fixing the auction on 26.04.2023 and the reserve price was fixed at Rs.2,16,00,000/-.

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4. Learned Counsel for the Respondent submits that Learned DRT has rightly stayed the operation of the confirmation of the auction. It is submitted that the issue of reserve price is under challenge in the S.A. application which is still pending.

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5. Having heard the Learned Counsel for the parties, I found the impugned order relates only to stay the confirmation of auction sale which was held 26.04.2023 fixing the reserve price for Rs.2,16,00,000/-. It appears that the issue of fixing of price of schedule asset is under challenge in SARFAESI application which is pending before the Learned DRT. It would be appropriate that the Learned DRT should be directed to decide the SARFAESI application

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expeditiously so that controversy may be sat at rest. Accordingly, Learned DRT is hereby directed to decide the SARFAESI Application within a period of eight weeks from the date of copy of this order is received. It is further directed that no unnecessary adjournment should be granted to either of the parties. Accordingly, Appeal is disposed of.

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ORDER

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Appeal is disposed of. The matter is remanded back to Ld. DRT-Visakhapatnam to decide the S.A. expeditiously within eight weeks from the date of copy of judgment is received in accordance with law after affording an opportunity of hearing to the parties. Auction purchaser should be impleaded as Respondent in SA within a period of 10 days from today. Learned DRT should afford an opportunity of hearing to the auction purchaser.

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No Order as to costs.

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File be consigned to Record Room.

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Copy of the order be supplied to Appellant and the Respondents and a copy be also forwarded to the concerned DRT.

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Copy of the Judgment/ Final Order be uploaded in the Tribunal’s Website.

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Order signed and pronounced by me in the open Court on this the 5^th day of January, 2024.

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(Anil Kumar Srivastava,J)

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Chairperson Dated: 5^th January, 2024 13/tp

Union Bank of India v. Ms S L N Tobaccos

Case brief

What is this about?

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Union Bank of India v. Ms S L N Tobaccos

Case brief

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