Disposed

Sudalgunta Jayaram Chowdary and 3 others v. State Bank of India

Telangana HC30 Dec 2021WP/12356/2021

Case brief

AI extract

What is this about?

This appeal challenges a Debts Recovery Tribunal order amidst a dispute over a bank's sale of secured assets. The High Court directed the Tribunal to hear the application within six months of regularizing its office while maintaining the status quo of the assets pending adjudication.

What did the court decide?

Directing the Tribunal to hear the application within six months; maintaining the status quo of the secured assets until the Tribunal starts functioning; disposing of writ petitions without costs.

Sudalgunta Jayaram Chowdary and 3 others Vs State… — Banking and Recovery | Telangana HC (2021)

¶1

HIGH COURT FOR THE S] r.,";,;,'3l!,3i l|l3li!,flf^{Ar HYD ERABAD}

¶2

THURSDAY, THE I ,* o * o, iX'^H'f,lB ?,iI ,?lf5...^r "^*

¶3

PRESENT

¶4

THE HON'BLE SRI JUSTICE UJJAL BHUYAN rHE H.N,BLE rrr r0U?,"u p.MADHAVT DEV'

¶5

WRIT P ETITION NO. 123s6 & 28136 F 2021

¶6

wRtT PETIT|ON NO. 123s6 0F 2021

¶7

Between:

¶8

Sudalgunta Jayaram Chowdary, S/o penchal Naidu. Aged about 71 years, Occ: ^^{Business.R/o_209,Tp Area, Of p: Bus StanO, fiiupattril St ZsOt} r. buoatagunta Ramanaiah _ Naidu, S/o Late panihal Naidu, Aqed Occ: .^{B usiness, R/o D. No. 20G, D No.1 9-3-2OiG} r, xa t.it ivi trta-sli, r;;yu"plTil:ET;.[i' 3 Sudalagunta.Agro l.rlitts Limired, 20g, Ii nrba-Opp:'eus S%,iO iirlp]i'hiSiiSOr, A.P. Rep.by its lrrlanaginq Director S.K.Kalvan XLjrhar

¶9

sudalgunta Sugars_ Pvtr Lt!, TP Area, opp: Bus stand rirupathi-s12501, Represented by its Director, Sudalgunta Jayar'a'm Chowdary.

¶10

.,.PETITIONERS

¶11

AND

¶12

t. 9!qtq Bank of lndia, SAM Branch-ll TSRTC Bus Station Kachiguda Hyderabad - 500 027. Rep.by its Authorized Officer.

¶13

1. Aaditri Housing Private Limited, Rep. by its Authorised Signatory Ir/ r. Aluri Nageswarao S/o Venkateshwarao, D.No.8-2-2931821A1233, 3'" Floor, Road No. 36, Jubilee Hills Hyderabad Telangana.

¶14

(Respondent No. 2 is impleaded as per Court Order dated 1311212021 Vide l.A. No. 4 of 2021 in W.P. No.12356 of 2021)

¶15

...RESPONDENTS

¶16

Petition under Article 226 of the constitution^{of lndia prayingthat in the} circumstances stated in the^{affidavitfiled therewith,the High court may be pleased} to issue order, writ oi direction^{more particularlyone in the nature of Writ of} certiorari a) Quash^{the order of the Hon',ble Debts Recovery Tribunal-l,Hyderabad} dated 05.05,2021^{in LA. No. 438/2021in s.A 45/2021b) Set asidethe sale notice} dated 25.03.2021^{issued by Respondent No.1 Bank as being illegal and contrary to} law

¶17

lA NO: 2 OF 202'l

¶18

PetitionunderSectionl5lCPCprayingthatinthecircumstancesstatedin theaffidavitfiledinsupportofthepetition,theHighCoUrtmaybepleaSedtostayall consequentialproceedingsarisingoutofeauctionsalenoticedated25.03.202land auctionproceedingsdated06.o5.2o2landfurtherrestraintheRespondentsfrom confirming the^{sale including issuing sale certificateof scheduled propertiespending} disposal of the^{abovewrit petition'}

¶19

/l A No:^3OF2021

¶20

Between: '^{r i^-^^^n6ntRranch-ll' 1"r Floor' cAc'TSRTC} ottice' BL1".B?,:[^{",liif; -ft i"fi ii3?,i:::f'y3i;:RT;1"?':tu;;';eo}

¶21

...PETITIONEFURESPONDENT

¶22

AND"1ffi+ift"5lfl6gg.;;;*?.'1,'Hffi

¶23

ffi,p'f,h'ffi

¶24

by its^{Director'Sudalagurrtauavorq.r""" '--}

¶25

...*TT'ONDENTS/,ETITIONERS

¶26

petition under section^{151 cpc prayingthat in the circumstancesstated in} the affidavit^{filed in support of the petition'the High Court may be pleasedto vacate} thelnterimorderdated^{j3losl2o2ipassedinw.pNo.1235612021onthefileof this} Hon,bleCourtanddismisstheWritPetitionNo.123561202lfiledbythePetitioners against^{the Respondent Bank in the interest of justice'}

¶27

lA NO: 5^{OF 2021}

¶28

Between:

¶29

Ivl/s. Aaditri^{HousingprivateLimited, D.No8-2-293 ll2tAl234 & 235,TF-1 ,3'd Floor,} -no5O ruo. 3;,-i;;;;hrr Cotony, Jubilee Hills. Hyderabad, Telangana. E.pir""Sqrr," -R;ii;;yit; n thoriiuo signr'tol'v |\li Ai"i Nasedwara Rao s/o Venkateswara Rao'

¶30

...PETITIONERYRESPONDENT^NO.2

¶31

AND

¶32

Sudalaqunta Jayaram^{Chowdary, S/o P^enchalJlaidu Aged-about7'1 years' Occ:} ' E;;r*;;; Fv;r6e.1i Area, opp: Bus Stand, rirupathi - s17501

¶33

z Sriiliilinta Ramanaiah^{NiiOu, Slo Late Panchal Naidu,Aged about 60 years} ' 6lL Erffiiiilid, nv"b.tto.2bc,'o.trto.ts'3-2otc1, Kakathiva Nasar' Tirupathi517501

¶34

a. Suaiiasunta Agro^{Mils Limited, 209,} Jp,^{Area,.opp:Bus StandTirupathi-S17501,} A.P. Re;.bv its-Manaqinq Director^{S.K.Kalyan Kumar}

¶35

+^{'s'rorridJn(a} Suqir^{piiviteLimited, TP Ar-ea, opp: Bus Stand, Tirupathi-517501'} Rep. bi its Direclor, Sudalagunta^{JayaramChowdary.}

¶36

...RESPONDENTSM/RIT PETITIONERS

¶37

5, State Bank of lndia, Stressed^{Assets N/anagementEranch-ll, 1't Floor' CAC,} isnfC Bus Station, Kachiguda^{Hyderabad-soo027. Rep by its Authorized} Officer.

¶38

..,RESPONDENT/RESPONDENT^NO.1

¶39

Petition under Section 151 CPC^{prayingthat in the circumstancesstatedin} the affidavit filed in support of the^{petition, the High Court may be pleasedto vacate} the interim orders dated^{1310512021passed in W.P.No.'12356 of 2021 andto dismiss} the W.P.No.12356 of 2021 with exemplary^{costs in the interest of justice,}

¶40

wRtT PETITIoN NO. 28136 0F 2021

¶41

Between:

¶42

Sudalgunta Sugars pv

¶43

;trffiwffifiilffi**ffidff

¶44

.,.PETITIONERS

¶45

AND

¶46

State Bank of rndia. sAIr,/ Branch-, TSRTC Bus station Kachiguda Hyderabad - 500 027. Rep.by its Authorized Officer

¶47

M/s_Aaditri Housing pvt. Ltd., No. 8-2-293182 1N234 and 235, TF_1,3,0 floor. Emprre square. Road No_36, Jawahar CotonV,- lrOife" -iiffi, ffvi"rJtli, Telanqana 500033

¶48

..,RESPONDENTS

¶49

Petition under Articre 226 o'f rhe constitution of rndia praying that rn the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue order, wril or direction more padicularly one in the nature of Writ of Mandamus a) set aside the Sale certificate dated 20.05.2021 issued by the Respondent No.1 Bank to Respondent No.2. b) Declare the issuance of sale Certificate by Respondent No.1 Bank to Respondent No.2 as being illegal and contrary to the Hon'ble High Court's lnterim Order in W.P.No.1235612021 c) Declare that the taking physical possession of the Petitioner's properties is illegal and arbitrary.

¶50

lA NO: 1 OF 2021

¶51

Petition under Section 151 CPC praying that in the circumstances statedⁱⁿ the affidavit filed in suppod of the^petition, the^{High Court may be pleasedto} suspend the sale certificate dated^{20/05/2021 and further restrainthe Respondent} No.1 from delivering the^{physical possession of the Petitioner's propertiesto the} auction^{purchaser pending} disposal^{of the abovewrit petition.} IA NO^..2 0F 2021

¶52

Between:

¶53

State Bank of lndia,^{StressedAssets lr,4anagementBranch - ll, lstFlo-or, CAC, TSRTC} e|,. Strti""^{-Xr.f,igraj,Hyderabad -500 027. Rep.by its AuthorizedOfficer.}

¶54

...PETITIONER/RESPONDENT

¶55

AND

¶56

1 sudalaqunta Suqars^{P!t.Ltd., TP Area,opp:Bus Stand Tirupathi-S17501' Rep'} bv its D'irector, Sudalagunta^{Jayaram uhowoary.}

¶57

1. sudalounta^{Javaramc#;.i*i, 5l;'Fenii-rirrtaiou,-1999.1?o't71 vears' occ:} ' Eilil;;;'Rlo los, iCnr"r, o'pp: Bus stand-rirupathi 517s01 3. sudaraqunta^{Ramanaiah'fiirii;5f"Iit"-panin'tNaidu Aqed:[rr']aior'occ:} Busineis. R/o. D.No.20G,^{ijliii.is:i2ofqi'xitiatrv'Naoar' Tiiupathi-s17s01}

¶58

1. Sudalaqunta^{Agro Ir/ills Li",itt'"tl idsliF.Ai;f'o!'p BIs Stand'Tirupathi-517} - ;di, n"P il;;. t"v itt vrn,ging Director S K Kalvan Kumar

¶59

...RESPONDENTS/PETITIONERS

¶60

,'' ul', s: I[l s"ill t? i- Hx ; &H,^::';1P"1 [j ;'ffil*iJ:^{JI :il} "^;

¶61

Petition^{under Section 151 CPC prayingthat in the circumstancesstated in} the affidavit^{filed in support of the petition, the High courtmaybe pleased to vacate} the lnterim^{order dated 1Ol11l2o21passedin w.P.No.28136ot 2021on the file of} this Hon'ble^{Court and dismissthe Writ PetitionNo 28136of 2021 filed by the} petitioners^{againstthe Respondent No lBank in the interest of 'lustice with} exemPlarY^cost'

¶62

IAN O:3^OF2021

¶63

Between:

¶64

Ir,4/sAaditriHousingPrivateLimited'DNo8-2-2931.821A1234and235'TF-13'dfloor'Emoire square,^{noao ruo iol il"i!;nZ''c"r;ly'} iy^ t""^{Hills' Hvderabad-Telangana'} 'R[lI;yilffiiiioii."o signuioni vr*inr"i^{Nageiwara Rao' S/o Venkateswara Kao}

¶65

...PETITIONEFYRESPONDENT^NO.2

¶66

AND

¶67

Sudalagunta^{Sugar Private Limited' TP Area'Opp: BusStand Tirupathi-} 517501, neptEJJn"i"o^{uv iii oirector'SudSlasunla} J,lygq 9S^11'v

¶68

Sudalagunt, iivuii'^{bnowdary' S]o} .Penchal^{Naidu' Aged about 71} - y;;", b"C, d;4ru;;, R/; rP Area' opp:^{Bus stand rirupathi} 517501 'od'

¶69

3.sudalaguntaRamanaiahNaidu,S/oLatePanchalNaidu,Agedabout60 - i"urr, b"., eriin;si, R/o D.ruo.zoc, D No l9-3-20/Gl ' Kakathiva Nagar' TiruPathi-5'1 7501

¶70

+. suditagunta Agro^{Mills Limited,209, TP Are_a, opp: Bus-Stand Tirupathi-} srTsol] A.P.^{R-ep. by its Managing Director, S K Kalyan Kumar}

¶71

..TRESPONDENTSM/RIT^PETITIONERS

¶72

State Bank of lndia, Stressed^{Assets Management Branch-|1,,1'tFloor,} CAC, TSRTC Bus Station, Kachiguda^{Hyderabad-500027. Rep.byits} Authorized Officer

¶73

..,RESPONDENT/RESPONDENT^NO.1

¶74

Petition under Sbction^'l 51 CPC^praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim orders dated 1011112021 passed in W.P.No. 28'136 of 2021 and lo dismiss the W.P. No. 281 36 of 2021 with exemplary costs in the interest of justice.

¶75

Counsel for the Petitioner in both the Petitions: Mr. DAMMALAPATI SRINIVAS, SENIOR COUNSEL FOR SRI VIMAL VARMA VASI REDDY

¶76

Counsel for the Respondent No.1 in both the Petitions:

¶77

SRI PODILA HARI PRASAD

¶78

Counsel for the Respondent No.2 in both the Petitions:

¶79

MT. A. SUDARSHAN REDDY, Sr. COUNSEL FOR Mr. ROHIT POGULA

¶80

The Court made the following: COMMON ORDER

¶81

.$_l-..

¶82

{ /

¶83

HONOURABLE SRI JUS-IICE UJJAL BHUYAN

¶84

HONOURABLE SMTJUSTICE P. MADHAVI DEVI

¶85

¶86

COmmon Order: pr Hot,bh J.n.luttie Liia/ tsba.tat)

¶87

Tlris order will dispose of bodr wp.Nos.1235 6 and 2g136 of 2021.

¶88

We have heard Mr. Dammalapati Srinivas, lcarned Senior Counsei for the petitior.rers; Mr. podila Hari prasad, learned c.u,sel lor respo,dent No.l /State Bank of Inclia; ancl Mr. A.Sudarshan Reddy, lcamcd Senior Counsel appcaring on behalf of Mr. Rohit Pogula, learncd counsel for respondent No.2/auction purchaser.

¶89

Writ Petition No.12356 of Zt)21. has been f,ted by the petitioners for quashing of docket order dated 05.05.2021 passed by the Debts Recovery Tribunal-I at I{yderabad (for short 'tl-re Tribuna.l') in LA.No.438 of 2021in S.A.No.45 of 2021,.

¶90

It may be mentioned that petitior.rers had availed loan [rom respondent No.1, b,-,t defaulted in repayment. As a consequence, respondent No.1 initiated procecdings asainst thc^{peritionersunder} the provisions of the Securitisation^{and Reconstructionof Financial} Asscts ancl llnFrrrcement of^{SecuriryInterest,\ct (for short'the} SARFAI|SI Act'). Pursuant^{thereto, sale noticedzted25'03'2021was"...} issucd by respon<lent^{No.1 lor auction salc of the securedasset on} 06.05.2021.

¶91

Aggrieved^{by the aforesaid' petitioners approachedthe'I'ribunal} by filing^{Securitisation Application underSection 17 ofthe} SARFAESI^{Act, which has been re5;isteredas S.A.No.45 of 2021.} Petitioners^{have also frledI'A'No'438 of 2027 for stay of the auction} sale.^{B-v docket order dated 05'05'2021' 'l'ribunai noted that} petitioners^{had already filed S'A'No'31 of 2020 rvherein conditional} stay was^{granted, but petitioners failedto complv with the condirions'} T'herefore,^{stay was declined'Respondent No'1 was granted [bertyto} proceed^{with the auctionsale, but it was clanfied that the auctionsale} woul<l bc^{subiect to outcomeof S'A'No'45 of 2021'}

¶92

It is^{this order, rvhich is under challenge in W'P'No'12356of} 2021. This Crurt,^{by order dated 13'05'2(121had restrained} respondent No.1 from^{confirming the sale includingissuanceof sale} certificate of the schedule^properties.

¶93

Allegrng that despite the aforesaid^{restraint order of this Court,} respondent No.1 issued sale certificate to the auction^{purchaser r.e..} respondent No.2 and challengrng such sale confirmatir>n, petitioner filed W.P.No.28136 ol 2021.

¶94

On 1.0.11..21)21, thc following order came t() bc passed:

¶95

"i)1, filirrg dris petrtion unrlcr ,\rticlc 226 <tf thc

¶96

Constitution of ltdia, petitiolers have challengecl thc legalin- and validiry of thc certificate of sale dated 20.()5.2021 issued uncler Rule 9(6) of Security Interest (Lnforcement) Rules. 2002 by the Authorised C)fficer of tespondent No.1.

¶97

Sn l)ammalapati Srinivas, leamed Senior Counsel for the petrtroners subrnits that otr the sarne subject matter petiuotrers

¶98

..?.,

¶99

¶100

had apptoached this Cour i eadiet b'v filing v'P'No.12356 of 2021. vt12ygi11rhis court passcd an order .n r3.0s.2021 rssuurg nodce ooo r.r,.^r'uu from co,firm,rgthe sare, -:t #:;::::::H:::: the schedure propertres pending crrsposal of the subject writ petrtion. He submits that ne6yil65gunclilg the clear restramt order of this court, responclent No.1 had gone ahead ancl issued the certrficate of sale clated 20.05.2021,.

¶101

Issue noticc.

¶102

Petitrorrcrs to scrve the respondents rhr, rugh courr pr()cess. In thc meanrvhile, there shall be stay of the rmpugnecl certiEcate of salc clated 20.05.2021.,,

¶103

After hearing learned coursel for thc parties ar_rd on perusal of the materials on rccord, rve find that S.A.No.45 of 2021 is stdl pending before the 'l'ribunal. In sucl.r circumstances, it would be just ar.rd propcr if the parties are relegated ro the forum of the Tribu,al for an eady ad judicatior.r of the aforesaid securitisario, Application. Ilowever, we have been informed that regular functioning of the Tribunal l-ras been ha,mpered as the office of presiding officer is vacant.

¶104

We therefore, direct that S.A.No.45 of 202.1, pendi,g before the 'rribunal may be heard expeditiously rvithin a period of six months from sucl.r dme the Tribuna.l starts functioning regularly.

¶105

11 . ,l talu.r En as on today as regards the secured asset shall be I, maintained bv thc parties concerned ti-ll such time regular functioning of the T'ribunal commences. Thereafter, we leave it to the discretion of the Tribunal to pass such order as may be deemed fit and proper.

¶106

::4::

¶107

Related^interirn 12.^{Writ Petiuons are' accordingly'<lisposedof'}

¶108

applications^{are also disposedof'}

¶109