Appointment of High Court Judge dismissed special application filed by Dolly Gugnani against Canara Bank, holding it not maintainable as loan was secured by pledge rather than hypothecation; clarified stay validity regarding auction timing.
Special application dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
SA/279/2023 DOLLY GUGNANI Vs CANARA BANK
27.10.2023 Item No.48
Present: Sh. DS Sidhu, proxy for Sh.Vikas Bali, Counsel for the Applicant.
Sh.Yogesh Kumar, Counsel for respondent bank.
In this case, vide order dated 25.09.2023, this Tribunal had directed the bank not to hold the auction on 26.09.2023 till 02:00 pm. Thereafter, bank conducted the auction. However, applicant has not challenged the auction. It has been brought to my notice that applicant had earlier approached the Hon’ble High Court with contempt petition, which has been dismissed by the Hon’ble High Court and now applicant has approached the Banking Ombudsman. Let it be made clear that the stay was only till 02:00 pm and not thereafter. In case, bank conducted the auction thereafter, then there is no violation of the order passed by this Tribunal.
Even otherwise, this SA is not maintainable as the bank had given the loan on the basis of pledge and not on the basis of hypothecation. Accordingly, this SA is hereby dismissed . Pending IAs, if any, also stands disposed of. File be consigned to record room after due compliance.
(A S Narang) Presiding Officer DRT-I, Chandigarh
MANOJ
2 issues framed by the court
Whether special application under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act is maintainable when loan was secured by pledge and not hypothecation.
Whether conduct of auction after stay period constitutes violation of Tribunal order.
Dolly Gugnani
Canara Bank
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
