Dismissed

Bharat immunological and biological Corporation Limited v. Canara Bank

DRT25 Mar 2026SA/375/2025

Case brief

AI extract

What is this about?

This application by a borrower against a bank was dismissed as not pressed since the depositor had fulfilled High Court directives. The auction purchaser's objection regarding legality of the sale was dismissed as inadmissible in this proceeding.

What did the court decide?

Sale application dismissed as not pressed; pending intervention applications of the auction purchaser also dismissed.

Bharat immunological and biological Corporation Limited versus… — Banking and Recovery | DRT (2026)

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S.A.No. 37512025 BHARAT IMMUNOLOGICAL AND BIOLOGICAL CORPORATION LTD. Vs. CANARA BANK

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Reserued on: 24.03.2026 Pronounced on :25.03.2026

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Present:

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Shri Shashank Dikshit, counsel for applicant no.1. Shri P.S.Singh, counsel for applicant no.2. Shri Hitesh Sachar, counsel for respondent bank.

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Ms. Reena Jain Malhotra, counsel for auction purchaser.

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Matter is taken through VC/Hybrid mode.

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The Ld. counsels of the applicants have submitted that as per order passed by the Hon'ble High Court in the Writ Petition CMM 2912026 Bharat Immunologicals and Biologicals Corporation Limited Vs. Canara Bank applicant has deposited the entire dues and the applicants does not want to^proceed fufther with the SA. Therefore, the SA of the applicant has become infructuous and the SA may be dismissed as infructuous.

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The Ld. counse! for the respondent bank has also admitted that the applicants have deposited the entire dues along with the interest in the registry of the DRT-II and if the SA applicant wants to withdraw the present SA, he has no objection.

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The Ld. counse! of the auction purchaser has vehemently opposed the prayer of the applicant and has submitted that the SA applicant has filed the present SA against the e.auction notice issued by the respondent bank. It is s.UPmitted that this Tribunal g)',

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vide order dated 05.01.2026 has dismissed^{the interim} prayer of the applicant and refused to stay the e.auction. The applicant^{has filed a Writ Petition CMM} 2912026 before the Hon'ble High^{Court and the} Hon'ble High Court has disposed^{of the Writ Petition} with the direction that the applicant^{may deposit the} dues with the registry of^{the Tribunali.e. DRT-II. The} said amount shall be deposited^{in form of fixed deposit} with auto renewal facility in^{the name of} TribunafRegistrar of the^{Tribunalwithin one month} from today. It is submitted^{that the Hon'ble High Couft} has never^permitted the^{applicant to redeem the} property on payment of the amount^{due alongwith} the interest. It is^{furthersubmitted that the Hon'ble} High court has left all^{the issues open to the Hon'ble} Tribunal for decision. It^{is submitted that as per} judgement passed by the Honble Supreme^{Court in} Bafna Motor case the^{right of the borrower to redeem} the property extinguishes^{from the date of the} publication of the sale notice. In^{the present matter} the auction^{purchaser has already deposited25o/o of} the bid amount on^{the date of the auction as the} auction^{purchaser was the successful bidder. It is} submitted that the auction^{purchaser has writtena} letter to the respondent^{bank for extensionof the time} to deposit 75o/o of the^{bid amountthough the auction} purchaser has already deposited the^{entire 75o/o of the} due amount, and^{therefore,the sale which has already} been completed and^{cannot be set aside. Itis} submitted that the^{sale can be set aside only on the} grounds mentioned in the SA.^{Therefore, itis} submitted that the SA^{cannotbe dismissed and the} issues raised in the^SA pe^{decided in accordancewith} g-l^l

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law and the respondent bank may be directed to issue sale ceftificate in favour of the auction purchaser. In this regard the auction purchaser has filed IA no.52L I 2026 & 7 23 I 2026.

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Heard the Ld. counsels of al! the pafties and perused the record.

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From^perusal of the record it is clear that the SA applicant has filed the present SA on certain^grounds mentioned in the SA. The applicant has prayed for interim relief. This Tribunal has heard the applicant and the respondent bank and has declined the interim prayer of the applicant. Though the Tribunal has directed the respondent bank to sympathetically consider the proposal of the applicant for settlement and the respondent bank was directed to communicate with the senior officials of the concerned department for settlement as the applicant was a Semi Government Organization. Aggrieved by the order passed by this Tribunal the applicant has filed the Writ Petition no.2912026 before the Honble Delhi High Court. On 27.01.2026 the Hon'ble Delhi High Court has permitted the Joint Secretary, Depaftment of Bio Technology to deposit the decretal amount along with the interest and^penalty within a^period of one month from today to the Ld. Tribunal. It was further directed that the said amount shall be deposited in the form of a Fixed Deposit with auto renewal facility, in the name of the Tribunaf Registrar of the Tribunal within one month from today. On 25.02.2026 the Hon'ble Delhi High Court has extended the time for deposit of the amount and finally disposed of the Writ Petition that all the contentions will be considered by the Ld.^DRT-

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II, Delhi. The applicant has deposited the^{entire dues} as^per direction of the Honble^{Delhi High Couft.}

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Now the applicant wants to withdraw^the present SA claiming that it has become infructuous and he does not want to^pursue the^{present SA. It is} the prerogative of the SA applicant to either^pursue the present SA or not^press the^present SA. If^the applicant does not want the SA to be^{adjudicatedon} the merits assefted in the SA, the SA applicant^cannot be directed to^proceed with the SA.^{Therefore,the} present SA is liable to be dismissed as it is not^pressed by the applicants.

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B. The contention of the auction^{purchaser that the} sale cannot be set aside in terms of the^provlsions contained under Rule 8(6) and 9(1) of^{the SARFAESI} Rules and redemption cannot be^{permittedafter} completion of the sale cannot be entertained in^the present SA. If the auction purchaser is aggrieved by any action of the bank, he is free to file^{an application} under Section 17(1) of the SARFAESI Act and^{all the} contentions raised by the auction^purchaser will^be heard and decided by this Tribuna!. In the^{present SA} the auction^purchaser is respondent and^{therefore, the} respondent cannot claim any relief in the SA^{filed by} the SA applicant. Therefore, the auction^purchaser cannot say that the legality of the sale^{must be} decided in the^present SA. If the SA applicant^{is not} pressing the SA, the same cannot be decided. The respondent bank is also not opposing the^prayer of the applicant. Therefore, the SA cannot be kept^pending on the application of the auction^{purchaser. Therefore,} -- '--s^l

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the IAs 72312026 and 52L12026 of the auction purchaser are liable to be dismissed and the SA is liable to be dismissed as not pressed.

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Order

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The SA of the applicant is hereby dismissed along with all pending IAs. The lAs 72312026 and 52L12026 of the auction purchaser are hereby dismissed. However, the auction purchaser is at liberty to take legal action under Section 17(1) of the SARFAESI Act in accordance with law.

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File be consigned to records.

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Date:25.03.2026

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cA\ (susHrL KUMrf;. RASTOGT) PRESIDING OFFICER DRT-II, DeIhi

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Bharat immunological and biological Corporation Limited v. Canara Bank

Case brief

What is this about?

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Bharat immunological and biological Corporation Limited v. Canara Bank

Case brief

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