Sanjit Kumar Sahoo @ Sanjit Sahoo Vs Regional Manager of… — Banking and Recovery | Orissa HC (2025)

Sanjit Kumar Sahoo @ Sanjit Sahoo Vs Regional Manager of… — Banking and Recovery | Orissa HC (2025)

What the court decided

AI extract

Outcome

No relief of setting aside the e-auction sale notice was granted; the writ petition was disposed of with the observation that the Petitioner may raise his objection to the publication of the e-auction sale notice before the Debts Recovery Tribunal and may also seek appropriate relief in the Bank's pending Section 19 application.

Issue for consideration

Whether the writ court should grant a direction to set aside the e-auction sale notice under Annexure-5 issued by the Chief Manager-cum-Authorized Officer, Bank of India for auction sale of the property. +1 more

Ratio / Principle

Where an application under Section 17 of the Act, 2002 assailing the e-auction sale notice under Annexure-5 is pending before the Tribunal, the Petitioner, if so advised, may move an appropriate application before the Tribunal raising objection with regard to publication of the e-auction sale notice.

Key takeaways

It is open to the Petitioner to move an application before the Tribunal in the Bank's pending application under Section 19 of the Act, 1993 for appropriate relief; accordingly, the Court is not inclined to entertain the writ petition at this stage.ratio¶25

Detailed headnote1 paragraphs

High Court of Orissa at Cuttack — W.P.(C) No.3245 of 2025 — Sanjit Kumar Sahoo @ Sanjit Sahoo v. Regional Manager of Bank of India, Bhubaneswar & others — Order dated 06.02.2025 (K.R. Mohapatra and Sanjay Kumar Mishra, JJ.). The Petitioner prayed for a direction to set aside the e-auction sale notice (Annexure-5) issued by the Chief Manager-cum-Authorized Officer, Bank of India, published during pendency of the Bank's application under Section 19 of the Recovery of Debts Due to the Bank and Financial Institutions Act, 1993. Counsel for the Bank submitted that the Petitioner had already filed S.A. No.16 of 2025 under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 before the Debts Recovery Tribunal, Odisha, Cuttack assailing the same notice (posted to 07.02.2025), rendering the writ petition unmaintainable. Holding that the Petitioner, if so advised, may move the Tribunal raising objection to the publication of the e-auction sale notice, and that it was also open to him to seek appropriate relief in the Bank's Section 19 application, the Court declined to entertain the writ petition at that stage and disposed of it with the aforesaid observation. Key themes: alternative remedy before the Debts Recovery Tribunal; maintainability of writ challenge to SARFAESI e-auction sale notice; concurrent Section 17 SARFAESI and Section 19 RDDBFI Act proceedings.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C). NO.3245 OF 2025

Sanjit Kumar Sahoo @ Sanjit Sahoo …. Petitioner

Mr. Binaya Kumar Mohanty, Advocate

-versus-

Regional Manager of Bank of India, …. Opp. Parties Bhubaneswar & others

Mr. Subrat Sarangi, Advocate

CORAM:

JUSTICE K.R. MOHAPATRA JUSTICE SANJAY KUMAR MISHRA

ORDER

Order No.

06.02.2025

This matter is taken up through hybrid mode.

Mr. Sarangi, learned counsel by filing Vakalatnama enters appearance on behalf of Bank of India-Opposite Parties.

Petitioner in this writ application prays for a direction to set aside the e-auction sale notice issued by the Chief Manager-cumAuthorized Officer, Bank of India for auction sale of the property in question.

Mr. Mohanty, learned counsel for the Petitioner submits that the Opposite Party-Bank has filed an application under Section 19 of the Recovery of Debts Due to the Bank and Financial Institutions Act,1993 (for short ‘the Act, 1993’). During pendency of such application, e-auction sale notice under Annexure-5 has been published. First Proviso to Section 19(1) of the Act, 1993 stipulates as under:

“Provided that the Bank or Financial Institution may, with the permission of the Debts Recovery Tribunal, on an application made by it, withdraw the application, whether made before or after the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act 2004 (30 of 2004) for the purpose of taking action under the Securitization and Reconstruction of Financial

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Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), if no such action had been taken earlier under that Act.”

In view of the above, the e-auction sale notice is bad in the eye of law and is liable to be set aside.

Mr. Sarangi, learned counsel appearing for the Bank of India vehemently objects to the same and submits that since an application under Section 19 of the Act, 1993 is pending before the Tribunal, it is open to the Petitioner to file an application for appropriate direction before the learned Tribunal. He further submits that the Petitioner has also filed S.A No.16 of 2025 before the Debts Recovery Tribunal, Odisha, Cuttack under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the Act, 2002’) assailing the e-auction sale notice under Annexure-5. Thus, the writ petition is not maintainable.

It is further submitted that the application under Section 17 of the Act, 2002 is posted to 7^th February, 2025 for appearance of the Opposite Party-Bank.

Considering the submissions made by the learned counsel for the parties, this Court is of the considered opinion that when an application under Section 17 of the Act, 2002 filed assailing the e-auction sale notice under Annexure-5 is pending before the Tribunal, the Petitioner, if so advised, may move appropriate application before the Tribunal raising objection with regard to publication of e-auction sale notice under Annexure-5.

It is also open to the Petitioner to move application before the Tribunal in the application under Section 19 of the Act, 1993 for appropriate relief. Hence, we are not inclined to entertain the writ petition at this stage.

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Accordingly, the writ petition is disposed of with the aforesaid observation.

(K.R. Mohapatra) Judge

(S.K.Mishra)

Mona

Judge

Signature Not Verified

Digitally Signed Signed by: MONALISA SWAIN Reason: Authentication Location: High Court of Odisha Date: 06-Feb-2025 17:56:49

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