Allowed

Ms Rinku Agriculture Farm v. the Citizen Co-Operative Bank Ltd.

DRT15 Mar 2025SA/240/2024

Case brief

AI extract

What is this about?

The DRT set aside an auction scheduled for March 17, 2025, because the applicant bank failed to register the security interest on the properties with CERSAI before the auction date, relying on the Gauhati High Court's mandate.

What did the court decide?

Auction fixed for 17.03.2025 set aside; present section retained allowed; bank not debarred from fresh SARFAESI action.

Ms Rinku Agriculture Farm versus the Citizen Co-Operative Bank… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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SA/240/2024 MS RINKU AGRICULTURE FARM Vs THE CITIZEN COOPERATIVE BANK LTD

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15.03.2025 Item No.7

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Present: Sh. J S Sodhi, Counsel for the Applicant. Sh.Arvind Rajotia, Counsel for respondent bank alongwith Sh.Padam, Manager.

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It is stated that the respondent bank has fixed the auction of four properties, for 17.03.2025. Out of these four properties, one property is 04 kanals 08 marlas of land situated at village Nagra; one is house; one is shop and another is 150 marlas of plot. Mr.JS Sodhi, counsel for the applicant argues that as far as land situated in village Nagra is concerned, it is agricultural land and it is so mentioned in the sale-deed on the basis of which the security was created in respect of 1/3 share by Kulbushan Aggarwal, in favour of the bank.

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As far as the house and shop are concerned, the security interest was created by Kusum Lata in respect of her 4/5 share, in favour of the bank. However, the bank has put up the whole property; house and shop for sale.

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As far as 150 marlas of land is concerned, it is stated that Ms.Shikha Aggarwal wife of Kulbhushan Aggarwal had created security in respect of 46 marlas of land, in favour of the bank.

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That apart, Mr.Sodhi, argues that there is no CERSAI registration in respect of all these properties. The bank had created security interest on 26.07.2024. Prior to that, bank had issued the notice under Section 13(4) on 06.04.2024. Mr.Sodhi has placed reliance upon the judgment passed by the Hon’ble Gauhati High Court in WP(C) No.182 of 2019, titled Goverdhan Prasad Atal versus Assam Gramin Vikas Bank and another, decided on 02.06.2020, 2021 AIR (Gauhati) 47 , wherein the Hon’ble Gauhati High Court has held that without security interest registration, the property could not be put up for auction.

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In view of this, the auction fixed up for 17.03.2025 is hereby set aside. The present SA is allowed. However, it is made clear that this order would not debar the bank from initiating fresh SARFAESI action as per law.

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File be consigned to the record room after due compliance.

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(A S Narang) Presiding Officer DRT-I, Chandigarh

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Pronounced in open court.

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MANOJ

Ms Rinku Agriculture Farm v. the Citizen Co-Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

Ms Rinku Agriculture Farm v. the Citizen Co-Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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