Allowed

M/s. Durga Jewellers and Gems Pvt. Ltd., And Another v. The Lakshmi Vilas Bank Ltd., And 8 Others

Telangana HC2 Nov 2022WP/19941/2019

Case brief

AI extract

What is this about?

The High Court allowed a writ petition challenging the Debts Recovery Tribunal's refusal to permit cross-examination of witnesses for three years. The Court noted the delay frustrated the purpose of expediting secured'enforceability matters. It quashed the impugned order and directed the Tribunal to permit cross-examination and proceed from that stage.

What did the court decide?

Allowed Writ Petition 19941 of 2019; quashed order dated 13.08.2019; remanded matter to the Debts Recovery Tribunal to permit cross-examination of AWS 1 and 2.

M/s. Durga Jewellers and Gems Pvt. Ltd., And Another Vs The… — Arbitration | Telangana HC (2022)

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[³³⁰⁶ ]

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

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WEDNESDAY, THE SECOND DAY OF NOVEMBER TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HONOURABLE SRI JUSTICE P.NAVEEN RAO

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THE HONOURABLE SRI JUSTICE J.SREENIVAS RAO

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WRIT PETITION NO: 19941 OF 2019

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Between:

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M/s. Durga Jewellers and Gems Pvt. Ltd., Registered Offlce and Place of Business, 22-5-1761177, Pattal Galli, Gulzar Houz, Hyderabad

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PETITION NO.1 - (DEFENDANT No.1 lN O.A.NO. 771 OF 2014)

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Sanjay Kumar Gupta, S/o Matadin Gupta Registered Office and Place of Business, 22-5-1761177, Pattal Galli, Gulzar Houz, Hyderabad

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PETITION NO.2 - (DEFENDANT No.2 lN O.A.NO. 771 OF 2014)

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,..PETITIONERS

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AND1 The Lakshmi Vilas Bank Ltd., Represented by its Asst. General ltrlanager, lVlain Branch, Bank Street, Koti, Hyderabad. RESPONDENT NO.1- (APPLICANT lN O.A.NO. 771 OF 2014)

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Sri Shiv Kumar Gupta, S/o Matadin Gupta, R/o 22-5-1761177, Gulzar Houz, Pattal Lane, New Aghapura, Hyderabad. RESPENDENT NO.2 - (DEFENDANT No.3 lN O.A.NO. 771 OF 2014)

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Sri Purushotam Das Gupta, S/o Matadin Gupta,2-4-45 and 94, Upper Ground Floor, M.G. Road. Hyderabad. RESPONDENT NO.3 - (DEFENDANT No.4 lN O.A.NO. 771 OF 2014)

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Sri Rajesh Kumar Gupta, S/o Matadin Gupta, 24-45 and 94, Upper Ground Floor, M.G. Road. Hyderabad. RESPONDENT NO.4 - (DEFENDANT No.5 lN O.A.NO. 771 OF 2014)

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Sri Durgesh Kumar Gupta, S/o Purushotham Das Gupta ,2-4-45 and 94, Upper Ground Floor, M.G. Road. Hyderabad. RESPONDENT NO.s -^(DEFENDANT No.6 lN O.A.NO. 771 OF 2014)

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Sri Subashchar 1 Gupta, S/o Matadrn Gupta, H.No. 14-1-tl)t), First Floor, M.G. Road. Hyr: erabad. RESPONDENI No.6 - (DEFENDANT No.7 lN O.A.NO. 7^/'' At 2014)

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Smt. AIla Chan: rakala, R/o. 2-4-45 and 94,44 and 95, Upp,,rr 3round Floor, M.G. Road. Hyl erabad. RESPONDENI No.7 -^(DEFENDANT No.B lN O.A.NO. 7⁷¹ CF 2014)

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B. Smt. Sangeeta )r-rpta, Wo Rajesh Kumar Gupta, 2-4-45 zrn,l 9z[, 44and 95 Upper Ground^: loor, M.G. Road. Hyderabad. Respondent No B - (DEFENDANT No.9 lN O.A.NO. 771 C)F 2014)

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The Debts Recr very Tribunal-|, Represent through Registrar,^-f reveni Complex Abids Hyderbad RESPENDENI No 9

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M/s Reliance A: set Reconstruction Company Representel l)y i1.s Authorised Person 11rn Flo^,r, North Side, R-Tech Park, Western Exprer;s l-lighway, Goregaon (Eas t, Mumbai - 400 0063

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(Respondent I' o 10 is impleaded as per Court dat€,d 0211 112022 vide lA.No.1 of 202ll in WP.No.19941 of 2019) .,.RESPONDENTS

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Petition under Article 226 of the Constitution of lndia p'aving that in the circumstances state(. in the affidavit filed therewith, the l- igrh Court may be pleased to issue app opriate Writ or order or direction more ;:articularly one in the form of wrt of C; )rtiorari calling for the records in lA. No 2126 of 2019 in O.A.No.771 of 2C14 rn the file of Respondent No.9 and quersh lhe order dated 13-09-2019 in iA. I'o.2126 of 20'19 in O.A. No.771 o'f 2t)14, on the file of Respondent No.9 de 'laring that the said order iS illegal, against the provisions and principles of law.

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lA NO: 1 OF 2019

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Petition under Section 151 CPC praying that in the ci-cumstances stated in the affidavit filed i, support of the petition, the High Court n'ray be pleased to stay all further procer dings in O.A.no. 771 of 2014 on the file of the respondent No.9 pending dispcs il of the Writ Petition.

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Counsel for the Petit oners: SRI D.V. REDDY

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Counsel for the Resl cndent No.10: SRI AMBADIPUDI SATY/\NARAYANA Counsel for the Resl: ondents No.1 to 9: The Court made the lrllowing: ORDER

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-2

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I \

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HON'BLE SRI JUSTICE P.NAVEEN RAO AND HON'BLE SRI JUSTICE J.SREENIVAS RAO

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WRIT PETITION No.19941 OF 2019

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ORDER t^(Per Hon'ble Si Justice P.Naueen Rao)

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Heard Sri D.V.Reddy, learned counsel for the petitioners and Sri Ambadipudi Satyanarayana, learned counsel appearing for the 1"t respondent-Bank.

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'l'he l"t petitioner is the borrower from the Lakshmi Vilas Bank Ltd- 1st respondent. As the borrower defaulted in repayment of loan, its loan account was classified as Non-Performing Asset and the Bank has taken recourse to the provisions of Securitisation and Reconstruction of Pinancial Assets and Enforcement of Security Interest Acl, 2AA2$or short 'the SARFAESI Act) and filed O.A.No.77l of 2014 before the Debts Recovery Tribunal-l at Hyderabad (for short the TribunalJ to recol,er the dues. During the course of recording of evidence, the request of petitioners to cross-examine Aws.l and 2 was rejected by order dated 13.08.2019. Challenging the same, this writ petition is filed.

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This Court pima-facie having lound that petitioners were entitled to cross-examine Aws.l ar,d 2, by order dated 15.10-2019 granted interim stay as prayed for.

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On lht' simy; r' isst-rc of pcrmittina thc pctitiorcrs t(,⁽ r', ss cxamine Aws. 1 ancl 12 the s:jlLe is pending frtr threc vears, rle1c i ti tg the very purposc ol expcdil rl.rs disposal of sr:cr-r ritzation matters.

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in the :rornr rl circumstancr:s, u,c rr,'oulcl har,,e rekrgrLtccl the parties to avail thc rerrt:r l,oi appe.)i under Section 18 c,l the SIAI?FAESI Act. However, having r :i1,ard to thc fact that the matter pert,i: ns. to the year 2074 and the is, r,re involvr:d is onlv regarding cross i xarnination of witnesses Arvs.I Lnd 2, t,c are of thc cpinion that th i rnrtter can be disposed of by rer i:iltirrg t1-rc mattcr to the^'lriltut-ra for c: r :sic i:ration.

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I{aving leg rr, I Lo the pcculiar facts of thj ; cas,:,^'uv e are of the opinion thzrl tl'rc^'r brrnal has crrcri in not perrnittilrg 1hr: pr:titioners to cross-exarritre A', s.1 and 2. Writ Pctition is accorclin 31,' iL]lou,ed. The matter is rcnlitle I t o Lhe Tribunal requesting thc^'lribun Ll to pcrmit the petitioncrs 1o cr')ss ,:xaminc Au,s. I and 2 ar-id to pr1),)c,r'l from that sL{rge.

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Penriir-rg rrr sc:cllancous pctitions, iI any, shzrll stan, l <:losed.

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SD/. K. AMMAJI ASSISTANT REGIS/RAR ,TRUE COPY// \J SECTION O}FICER To, 1. The Registrar Debts Recovery Tribunal-|, Treveni 6661l|r:rx Abids, Hyderbad 2. One CC to Sf ll D.V. REDDY, Advocate [OPUCI 3. One CC to Stll AIVBADIPUDI SATYANARAYANA, Advrc;ate [OPUC] 4. Two CD Copi :s BB^ e.tP/Y

To,

HIGH COIJRT

DATED: 0211'12022

ORDER

WP.No.19941i of 2019

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