Partly allowed

Mr. Gourishetty Sai Varun v. Indian Overseas Bank and 2 others

Telangana HC20 Dec 2021WP/34492/2021

Case brief

AI extract

What is this about?

In a writ petition challenging an E-Auction Sale Notice under the SARFAESI Act, the High Court directed the petitioner to deposit 15% of outstanding dues within fifteen days. The auction was allowed to proceed conditionally, subject to the hearing of the Securitisation Application before the non-functional Debts Recovery Tribunal.

What did the court decide?

Directed the petitioner to deposit 15% of outstanding dues within 15 days. Auction allowed to proceed but sale confirmation certificate to be withheld pending disposal of Securitisation Application.

Mr. Gourishetty Sai Varun Vs Indian… — Contract and Commercial Disputes | Telangana HC (2021)

¶1

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

¶2

IVONDAY, THE TWENTIETH DAY OF DECEIVBER TWO THOUSAND AND TWENTY ONE

¶3

PRESENT

¶4

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

¶5

wRtT PET|TION NO. 34492 0F 2021

¶6

Between:

¶7

IVlr. Gourishetty Sai Varun, S/o Sri G. Nagaraju Aged 34 years, Occ. Advocate R/o. H. No. 2-5-4, Sikhwadi, Karimnagar-505001

¶8

...PETITIONER

¶9

AND

¶10

1 lndian Overseas Bank, Karimnagar Branch, D. No. 7-4-42211 , I/akarampra, Karimnagar-505001 Rep by its Authorised Officer

¶11

Ivl/s. G. Suman Filing Station, Rep by its Proprietor lt/ r. Gourishetty Suman D.No. 3-7-929, Gourishetty Venkataiah Nagar, SRR College Road, Karimnagar Telangana-505001

¶12

3 Smt. Gourishetty Nirmala, W/o G. Nagaralu, Aged 62 years, R/o. H. No. 2-5-4, Sikhwadi, Karimnagar-50500 1

¶13

...RESPONDENTS

¶14

Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or direction more particularly one in the nature of writ of mandamus declaring the action of the Respondent No.'l Bank in pursuant to the issuance of - E-Auction Sale Notice dated 01 .11.2021 fixing the auction on 22.12.2021 in respect of the Petition Schedule Property including taking physical possession of the Petition Schedule Property without following the mandatory provisions under Securitization and Reconstruction of Financial Assets and Enforcement of Security lnterest Act, 2002 and the rules made there under in respect of Petition Schedule properties as illegal, arbitrary and violative of provisions contained in Article 14, 21 and 300-4 of the Constitution of lndia and also violation oi principles of natural justice and consequently to set aside the E-Auction Sale Notice dated 0"1 .1 1.2021 flxing the auction on 22.12.2021, as illegal, arbitrary and in voilative of provisions contained in Article 14,21 and 300-4 of the Constitution of lndia and also violation of principles of natural^justice.

¶15

PETITION SCHEDULE PROPERTY

¶16

All that property situated at H.No.10-4-30/2/1 . Comprising an extent of 368 Sq. Yards or 307.64 Sq. Mts. in Sy.No.1355/8, situated at Vavilapally locality, Arepally Road, within the limits of Municipal Corporation Karimnagar, Karimnagar Mandal & District., and bounded by:

¶17

East : House Bearing No.10-4-3082 belonging to Ravinder West : 60ft Wide Road. North: Land belonging to Gourishetty Tirupathi. South: Land belonging to Gourishetty Sudhakar

¶18

lA NO: 1 OF 2021

¶19

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be^pleased to grant stay of all further proceedings in pursuant to issuance of the E-Auction Sale Notice dated 01 .11.2021 fixing the auction on 22.12.2021 issued by the Respondent herein where under the Respondent has invoked the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security lnterest Act, 2002 and the rules made there under in respect of Petition Schedule properties, pending disposal of the above writ petition.

¶20

Counsel for the Petitioner: SRI BALSHETTY SANJAY KUMAR

¶21

Counsel for the Respondent No.1: SRI G. RANGAIAH,

¶22

S.C. FOR INDIAN OVERSEAS BANK

¶23

Counsel for the Respondent Nos.2 & 3: -

¶24

The Court made the following: ORDER

¶25

HONOURABLE SRI JUSTICE^UJJALBHUYAN AND

¶26

HONOURABLE SMTJUSTICE^{P. MADHAVI DEVI}

¶27

W.P.No. 92 of 2021

¶28

ORDER:^{(Per|{rn'h/e Si} lnstie^{!1alBhryat)

¶29

Heard IVr. Ralshetti^{SaniayKumar,learned counseifor the} petitioner, and l4r. G.Rangaiah,^{learnedcounsel for respoadent} No.1 /Indian Overseas Bank.

¶30

Petitioner claims to be the guarantor -cum-^{mortgager' to the} Ioan availed of by respondent^{No'2 from respondent No'1/Indian} Overseas Bank. Hor',u-ever,^{for the failure on the part of the} borrower, in repayng^{the loan alnount,respofldeflt No.1 initiated} proceedings undcr tl-rc^{Sccuritisatior-r and Reconstructionof} Financial Asse ls and^{Enfcrrcement of Securirylnterest Act, 2002} (for short 'the SARItr,\ISI Act').^{As a consequencc,E-auctionsale} notice for sale of immovable^{properties was issued by respondent} No.1 on 29^.09 .2021 ,^{hxing auctionsale of the secured asset on} 22.12.2021. As pcr tl-re^{sale notice,the outstanding dues as on} 29.09.2021 is Rs.75,59,963.00.

¶31

Learned counsel for the^{petitioner submits that againstthe} action of respondent^{No.1 ininvoking provisionsofthe} SARFAESI Act,^{petidonerhas filed Securitization Application} under Section 17 of the^{SARFAESIAct before the DebtsRecovery}

¶32

Tribunal-I, Hyderabad^{(for short 'the Tribunal'), whichhas been} registered as S.A.No.86^{of 2021,.Florvever, presendy,there is no} Presiding Officer of^{the Tribunal renderingthe 'l'ribunalnon-} functional. Flence, the^{Writ Peridon'}

¶33

On a query by the Court,^{he submitsthat petitioneris r'vi11ing} to deposit 1,5oh of^{the outstandingdues withina period of thirry} dap from today.

¶34

Learned counsel for^{respondentNo'1/IndianOverseasBank} submits that auction^{sa-ie of the securedasset is hred on 22.12.2021} md already a number of^{prospective bidders have appliedbefore} respondent No.1 to participate^{in the scheduledauction sale.}

¶35

I'{aving heard iearned counsel for^{the parties and on due} coflsideration, we are of the^{view that since pet.itioner has already} filed Securitisation Application^{before the 'I'ribunal,it rvouidbe just} and proper if the petitioner^{pursueshis remedy before the'fnbunal'} Horvever, we direct that petitioner^{shall dcposit159/o of the} outstanding dues rvithin a^period of^{hfteen da1's from today with} respondent No.1 /Indian Overseas^Bank.

¶36

¶37

Respondent No.1 may proceed with the E-auction^sale scheduled on 22.12.2021. Subiect ttt^{the pctitionerdepositingthe} aforesaid amount within the prescribed period,,^{respondent No.1} shall not issue sale confumation certihcate^{to the successfulauction}

¶38

::3

¶39

bidder trll such time^{thc 'fribunal is functional and proceeds with}

¶40

tl-re hcaring o[ S.,.No.8(r of^2021.

¶41