Partly allowed

Ms Bhushan Trading Co. v. the Citizens Urban Co. Operative Bank Ltd.

DRT22 May 2025SA/242/2024

Case brief

AI extract

What is this about?

In MA/54/2025 and SA/242/2024, the Tribunal allowed the applicant's sale application but set aside a pending auction fixed for 17.03.2025 due to lack of CERSAI registration, relying on Gauhati HC precedent, while permitting the bank to initiate fresh action.

What did the court decide?

The auction fixed for 17.03.2025 is set aside; sale application allowed. The bank is permitted to initiate fresh SARFAESI action.

Ms Bhushan Trading Co. versus the Citizens Urban Co… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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MA/54/2025 IN SA/242/2024 MS BHUSHAN TRADING CO Vs

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THE CITIZENS URBAN CO OPERATIVE BANK LTD

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22.©5.2025

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Item No.99

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Present: Mr. J.S. Sodhi, Counsel for the Applicant (on VC). Mr. Arvind Rajotia, Counsel for respondent bank (on VC)

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Registrar has put up this matter before me.

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Heard on MA No.54/2025 in SA/242/2024, for correction in the name of the proprietor and mortgagor in the order dated 15.03.2025 passed by this Tribunal. Mr. Rajotia, states that the application may be allowed subject to all just exception.

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Accordingly, I hereby allow the application, subject to all just exception. The Court master is hereby directed to make the necessary correction in the order dated 15,03.2025 and correct the name of "Kulbhushan Aggarwal as Chander Bhushan in 8th line" and name of "Smt. Shikha Aggarwal as Smt. Rajni A'ggarwal in 15&1 line" of the order. Thereafter, file be consigned to the record room after due compliance.

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Pronounced in open court.

mc DRT-I, Chandigarh

PANKAI

t/ ga$P g $,

DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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r I

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SN1242i2q24 MS BHUSHAN TRADING CO Vs

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Item No.8

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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 Eugis of which the security was created in respect of 1/3 share byi-K£f6ushan 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 Kusurn 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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A n.ds far as 150 marlas of land is concerned, it is stated that ts.biiTkha Aggarwal' wife of Kulbhushan Aggarwal had created ;ecurity in respect of 46 rnarlas 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 Ga u hat:i High Court in WP(C) No.182 of 2019, titled Goverdhan Prasad Ata! 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 coMptiance.A

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MAIVOJPronounced in open court.

Ms Bhushan Trading Co. v. the Citizens Urban Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

Ms Bhushan Trading Co. v. the Citizens Urban Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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