Allowed

Punjab National Bank v. Idbi Bank Ltd. & Anr.

DRAT19 Nov 2024MISC APPEAL/63/2019

Case brief

AI extract

What is this about?

The DRT Appellate Tribunal allowed an appeal by a bank against an order dismissing its application to lift a property attachment by another bank. The Tribunal held that a subsequent One Time Settlement discharged the first respondent's interest in the attachment, enabling registration of the sale certificate.

What did the court decide?

The Appeal is allowed; the impugned order is set aside; the Sale Certificate is directed to be registered with the Sub Registrar of Perianaickenpalayam.

Punjab National Bank versus Idbi Bank Ltd. & Anr. — Company and Corporate | DRAT (2024)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT CHENNAI

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Dated the 19^th of November, 2024

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PRESENT: Hon’ble Mr. Justice G. Chandrasekharan CHAIRPERSON

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M.A:63/2019

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(IA 1387/2019 in OA 607/2017 on the file of DRT-Coimbatore)

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BETWEEN

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Punjab National Bank, Mid Corporate Branch, No.774, Oppanakara Street, Coimbatore – 641 001.

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Represented by its Chief Manager.

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….Appellant

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AND

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IDBI Bank Limited, Raja Street Branch, 589, Sri Lakshmi Lodging Complex, Raja Street, Coimbatore – 641 001.

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Mrs. Shyamala Prabu,

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W/o G. Selvaraj Prabu, No. 65, Sreevatsa Gardens, Mettupalayam Road, Thudiyalu, Coimbatore – 641 034.

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…..Respondents

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(R2 given up)

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Counsel for Appellant : Mr. M.L.Ganesh Counsel for 1^st Respondent : Mr. S. Sathiyanarayanan

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ORDER

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This Appeal is filed against the order passed in IA 1387/2019 in OA 607/2017 on the file of DRTCoimbatore.

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Learned Counsel for Appellant Bank submitted that the Appellant Bank granted loan facilities to i) M/s. Selvaraaj Prabhu, which is a partnership firm consisting of Mr. Selvaraaj Prabhu and Mrs. Shyamala Prabhu and ii) M/s. Pethanachi Stores, consisting of M. Selvaraaj Prabhu and Mrs. Shyamala Prabhu, as partners. The properties, including Petition schedule property, had been mortgaged as security for the loan availed on execution of Memorandum of Title Deeds on 30.05.2016. Since, the above said firms committed default in paying the loan amount due, measures under SARFAESI Act, 2002, were initiated, and the schedule mentioned property was sold in e- auction held on 27.12.2018 and Sale Certificate was issued to the Auction Purchaser, on 07.01.2019. When Sale Certificate was presented for registration before the Sub Registrar,

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Perianaickenpalayam on 10.04.2019, the Sub Registrar refused to register the Sale Certificate on the ground that the property had already been attached by the order of the Tribunal in IA 243/2008 filed by 1^st Respondent. The Appellant Bank was not a party to IA 243/2008. In the said circumstances, an Application in IA 1387/2019 was filed by the Appellant Bank for raising the attachment. Said Application was dismissed by Learned Presiding Officer for the reason that only after passing of order of attachment, the schedule property was sold in e-auction and sale certificate was issued in favour of Auction Purchaser. It is further observed that there is no reference about the mortgage with first Respondent Bank in the Memorandum of Deposit of Title Deeds. Challenging the dismissal order, this Appeal is filed.

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Learned Counsel for 1^st Respondent Bank filed a Memo stating that during the pendency of this Appeal, 2^nd Respondent and Mr. Selvaraaj Prabhu approached the 1^st Respondent Bank for One Time Settlement (OTS) and the 1^st

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Respondent Bank had approved the said OTS for a full and final settlement of Rs. 8 Lakhs, on 19.03.2024. Accordingly,

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1^st Respondent has no subsisting interest in the attachment order that was entered into registers of Sub Registrar Office in Perianaickenpalayam.

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There is no appearance for the 2^nd Respondent despite service of notice through registered post.

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The case of the Appellant Bank is that the 2^nd Respondent as a partner of M/s. Selvaraaj Prabu and M/s. Pethanachi Stores, had availed loan from the Appellant Bank along with other partner Mr. Selvaraaj Prabhu. Memorandum of Title Deed was executed confirming the loan. The property was sold in e-auction on 27.12.2018 and Sale Certificate was issued on 07.01.2019. However, Sale Certificate was refused to be registered mainly for the reason that there was already an attachment in favour of 1^st Respondent Bank on the basis of Order passed in IA243/2018.

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Taking into consideration of the subsequent events

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where the 2^nd Respondent has settled the dues of the 1^st Respondent Bank through OTS, this Tribunal is of the view that 1^st Respondent Bank has no more subsisting interest in the attachment order in its favour and registered in the registers of Sub Registrar of Perianaickenpalayam.

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Thus, order passed by DRT, Coimbatore, in IA 1387/2019 in OA 607/2017 is hereby set aside, and it is directed that the Sale Certificate be registered with Sub Registrar of Perianaickenpalayam.

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In view of above observations, the Appeal in M.A:63/2019 is allowed. Both parties shall bear their own costs . All pending IAs, if any, stand closed.

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[Dictated to Athistamani, PS, in open court, transcribed by her, corrected and signed by me this 19th of November, 2024]

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[ Justice G. Chandrasekharan] CHAIRPERSON

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Punjab National Bank v. Idbi Bank Ltd. & Anr.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Idbi Bank Ltd. & Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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