Dismissed

M/s. Vajra Infracon v. The Authorised Officer

Telangana HC15 Dec 2021WP/32470/2021

Case brief

AI extract

What is this about?

In a petition under Article 226 against the bank's E-auction notice under the SARFAESI Act, the High Court dismissed the writ petition. It held that the petitioners had approached the Debt Recovery Tribunal under Section 17 of the SARFAESI Act, where a conditional stay existed but they failed to deposit the required amount. Consequently, the court refused to entertain the writ and declined to ente

What did the court decide?

The writ petition and IA were dismissed; the proposed E-auction is subject to the outcome of the pending Tribunal application.

M/s. Vajra Infracon Vs The Authorised Officer — Banking and Recovery | Telangana HC (2021)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

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(Special Original J urisdiction)

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WEDNESDAY, THE FIFTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY ONE

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PRESENT

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THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE SMT JUSTICE P.MADHAVI DEVI

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wRrr PETtTtoN NO. 32470 0F 2021

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Between:

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'1 . M/s. Vajra lnfracon, Represented by its Managing Partner, A Venkata Sudheer Kumar, Flat No. G-1 , Cheela Life Space, Gayathri Nagar, Jeedimetla Village, Quthbullapur Mandal, Hyderabad

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A. Venkata Sudheer Kumar, S/o. A.V. Subba Rao, Aged. 42^years, Occupation^. Private Service, Flat No. 104, Cheela Gurukulam Habitat, Gayathri^Nagar, Suchitra Circle, Hyderabad

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A. Swati Manikanti, W/o. A. Venkata Sudheer^{Kumar Aged. 40 years,} Occupation: House Wife, Flat No. 104, Cheela Gurukulam^{Habitat,Gayathri} Nagar, Suchitra Circle, Hyderabad ...pETtTtoNERS

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AND

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The Authorised Officer, Union Bank of lndia, Chikkadapally^{Branch D.No.1-8-54} To 1-B-54A, Chikkadapally Main Road, Hyderabad ...RES,ONDENT

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Petition under Article 226 ol the Constitution of^{lndia prayingthat in the} circumstances stated in the affidavit^{filed therewith,the High Court may be pleased} to issue writ in the nature of^{rlandamus, declaringthe proceedings of Respondent} Bank under the^provisions of SARFAESI^{Act, includingthe E- AuctionSaleNotice} Dt. 2611112021 fot Sale of immovable^{property issuedby the Respondent Bank} under Rule 8(6) of security^{lnterest(Enforcement)Rules 2002 therebyproposing} conduct E-Auction on^{1611212021in respectof scheduleproperty underprovisions} of Sarfaesi Act and the Security^{lnterest Rules 2002 as well as the other measures} taken by the respondent under^{the provisions of Sarfaesi Act and prayingto declare} the same as illegal, arbitrary^{and againstthe principlesof natural justice and also} oppose to Article 14 of Constitution^{of lndia.}

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IA NO: 10F 2021

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Petition under Section 15'1^{CPC prayingthat in the circumstancesstated in} the affidavit filed in support^{of the petition, the High court maybe pleasedto stay all} further^proceedings of^{RespondentBank under the provisions of SARFAESIAct,} including the E- Auction^{Sale Noticefor Saleof immovable property issued by the}

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Respondent Bank under lule 8(6) of security lnterest (Enforcemeni) Rules 2002 Dt. 2611112021 thereby pro losing conduct E-Auction on 16112t2021 in respect of Schedule property under provisions of Sarfaesi Act and the security lnterest Rules 2002 as well as the othe measures taken by the respondent under the provisions of Sarfaesi Act till the dispo ;al of the present Writ petition.

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Counsel for the Petition,,rs: SRI G. K. DESHPANDE

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Counsel for the Respon lents: Mr. V. SETHUMADHAVA RAO,

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REp. Mrs. V. DYUMAN|, S.C. FOR UNTON BANK OF |NDA

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SRI M.V.S. PRASAD,

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The Court made the foll,,wing: ORDER

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HONOURABLE SRI JUSTICE UJJAL BHUYAN AND

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HONOURABLE SMTJUSTICE^P. MADHAVI^DEVI

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W.P.No.32470 of 2021

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Ofdef: (Pet Hon'bte Si lusticc^{lljjatBhuyan)}

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Heard Mr. G.I(Deshpande,^learned counsel^{for the} petitioners, and Mr. V. Sethumadhava^{Rao, Iearned counsel} representing Mrs. V. Dy'umani, learned Standing^{Counselfor the} respondent/Union Bank of India.

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On 13.12.2021, we had passed^{the following order:}

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"Agai,rst e-auction sale notice dated 19.07.2021 issued by the respondent undet the Securitization^and Reconstructinn of Frnancral^{AssetsandEnforcement} of Securiq' Interest Act, 2002 (bneflv.^{the SARhAESI} Act hercinafter), petihotler has^{approacheclthe Debts} Recovery Tribunal-Il, Hyderabad^{(Tnbunal) by filing} securitization applcation under^{Section17 of the} SARFAESI Act which has been^{repfstered as} S.A.No.134 of 2021. and^is stated to^{be pending'}

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Tribunal passed a conditional stay otdet.^{not to} confirm the sale on deposit of^{P.s.80 lakhsin two equal} installments. It is admitted that petitioner^{did not pay} the aforesaid amorurt. Flowevet, the^{auctionptoposed} pursuant to tlre e-auction sale notice dated^19.07.2021 failed for want of biddets.

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Now, respondent has issued ftesh e-auction^sale notice dated 27 .11.2021.

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<br>

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On d e ground that there is no Presiding Officer of the Tribr nal, petitioner has approached tiis court under Afi cle 226 of the Constitution of India.

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l,ear1 :d counsel for the petitroner to obtain mstructio r as to horv much amount petrtioners shall pav to tl: : respondeut. We make it clear that unless there is leposit by the petrtioters of a substantial amount, ve may not be inclined to entertain the wnt peurion.

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List < n 15.12.2021 hrgh on board."

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-) Today, wh :n the matter is called upon, learned counsel for the petitioners h; s referred to the impugned E-auction sale notice dated 26.11.202., arrd submirs therefrom that petitioners are seeking stay of tl e schedule properties at items No.2 and 3.

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On a qu rry by the Court as to hov/ much amount petitioners are in a position to deposit, he submits that petitioners are n, )t in a position to deposit any amount as on date. Petitioners have arran€aed a buyer for item No.1 of the schedule propcrtics and i ' the respondcnt/Union Bank of lndia permirs, the said properl r' can be sold to the buyer; such sale rvill fetch more than 2 crores. As a matter of fzct, the proposed truyer has akeady deposite, I Rs.20 laLhs.

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We are n(,t inckred to enter into such nirty-gntties as put forward by the retitioners. Admittedly, petitioners have availed their remedy rnder Section 17 of the Securitization and

Reconstruction of^{Financial Assets and Enforcementof Security} Interest A.ct, 20(\2^{(briefl1, 'the SARFAFISI Act' l.rcreinaftcr),} before the Debts^{l{ecoveryTribunal-Il,I Iyderabad(for short 'the} Tribunat') r.zde S.A.No.134^{of 2027,whichis pending'Though} the Tribunal had^{passeda conditional stay ordersub ject to} deposit of Rs.80^{lakhsby the petitioners' petitionershave failed} to deposit the said amount.^{In these circumstances, we are not} ioclined to entertain^{the Writ Petition. However, we clari$'} that the auction^{sale, which may take place pursuantto the} E-auction sale^{notice dated 26.77.2021, would be subiect to the} outcome of S.A.No.134^{of 2)21,p.rdi.,i b.fo'ethe Tribunal'}

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Writ Petition^{is, accordingly,dismissed'Related interim}

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application^is also^dismissed.

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7 . No costs

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SD/.P.PADMANABHA REDDY ASSISTANT REGISTRAR

€,

//TRUE COPY//

SECTION OFFICER

1 One CC to Sri G. K. Deshpande,^Advocate [OPUC] 2 One CC to Smt. V. Dyumini,^{S.C. for Union Bankof lndia (OPUC)} J One CC to Sri M.V.S. Prasad,^{Advocate (OPUC)} 4 Two CD Copies. 5 One Spare Copy. MP KBS

HIGH COURT

DATED:1 511212021

ORDER

WP.No.32470 ol 2021

.: ..
2 1 ,l,r.tl zCI??

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DISMISSING TlIE WRIT PETITION WITHOUT COS TS