Disposed

M/s K Sulochanamma Ginning Pressing Factory v. Karnataka Bank Ltd.

Telangana HC8 Jun 2022WP/24518/2022

Case brief

AI extract

What is this about?

The High Court dismissed the writ petition against an E-auction notice under the SARFAESI Act, observing that the petitioner's statutory remedy under Section 17 prevents interference. It allowed a conditional stay upon depositing 15% of dues within 30 days, otherwise permitting the respondent to proceed with recovery.

What did the court decide?

Conditional stay on E-auction proceedings subject to petitioner depositing 15% of outstanding dues within 30 days.

M/s K Sulochanamma Ginning Pressing Factory Vs Karnataka… — Cheque Dishonour | Telangana HC (2022)

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HIGH COURT^{FORTHE STATE OF TELANGANA: AT HYDERABAD} (SPecial Originat Jurisdiction)

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WEDNESDAY ,THE^{EIGHTH DAY OF JUNE} TWO THOUSAND^{AND TWENTY TWO}

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PRESENT

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THE HON'BLE^{SRI JUSTICEUJJALBHUYAN} AND THE HON'BLE^{MRSJUSTICESUREPALLI NANDA}

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WRIT PETITI^{ON NO:2451 80F 2022}

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Between:

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M/s K Sulochanamma^{GinningPressing Factory, Sy No 116'Basapu.ram} ii;;;i;;;irpriu,^{Viriug", AooniRepi.bvits Manasing Partner Konka} Muralidhar.

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...PETITIONER

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AND

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Karnataka Bank^{Ltd, Asset Recovery Management Branch Plot No'50'} Stiiiil"i c"r"ry,^{noaa-t'to.s, Baniara Hills' Hyderabad-73 Rep by its} Authorized signatory

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...RESPONDENTS

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Petition under^{Article 226 of the constitutionof lndia prayingthat in the} circumstancesstatedintheaffidavitfiledtherewith,theHighCourtmaybe ;i";;;;^{to issue writ of Mandamusor any other appropriate writ, _order or} oirection by setting^{aside the e-Auctionsale noticedated 28.04.2022fixing the} Jrt" of auction^{lb.OA.ZOZZ, as without followingthe procedurecont-emplated} unae, 1,e Act^{as illegal, nuli and void without followingdueprocessof law and} direct debt,s Recovery^{Tribunal- ll, Hyderabadto dispose the case} "on."qu"ntrv SAIR No. 526 of^{2022 on merits}

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IA NO: 10F 2022

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Petition under^{section'151 CPC praying that in the circumstancesstated} in the affidavit filed^{in support of the petition,the High Court may be pleasedto} ;i"r;iutL frrtn",.^{pro"uuiing,in pursuance,of the- E-Auction satenotice dated} )a.oi.zozz fixing the^{date of auction 10.06.2022including takingphysical} possession of the ProPerties.

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Counsel for the^{Petitioner:Ms. P' HamsaDurga}

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Counsel for the^{Respondent: None Appeared}

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The Court made^{the following: ORDER}

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)

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THE HONOURABLE SRI JUSTICE UJJAL BHUYAN

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AND

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THE HONOURABLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION No.24518 of 2022

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ORDER: (Per Hon'ble Si Justice Ujjal Bhuyan)

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Heard Ms. Hamsa Durga Ponnam, learned^{counsel for} the petitioner.

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Petitioner is aggrieved by E-auction sale notice for sale of immovable assets issued by the^{respondentKarnataka} Bank Ltd. on 28.O4.2022.

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It is stated that petitioner had availed loan from the respondent, but for various reasons, beyond the^control of the petitioner, it defaulted in making repayment. As a result, respondent invoked provisions of the Securitisatibn and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2OO2 (briefly referred to hereinafter as the 'SARFAESI Act'). In this connection, impugned E-auction sale notice dated 28.04.2022 has been issued^proposing to

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2 UB,J&SN,J W.P.No.24518 of 2O22

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i I

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hold auction sale of 4 Nos. of schedule properties o11 to.06.2022.

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Learned counsel for the petitioner submits that against the steps taken by the respondent under the SARFAESI Act, petitioner has filed securitisation^application before the Debts Recovery Tribunal-Il, Hyderabad^(Tribunal) under Section 17 of the SARFAESI Act, which has^been numbered as S.A(I.R).No.526 ol 2022. However, there^{is no} Presiding Oflicer in the Tribunal rendering the^{same non-} functional. As a result, petitioner has been^compelledto approach this Court.

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From the impugned E-auction sale notice, it^is seen that outstanding dues of the petitioner has^been quantified by the respondent at Rs.8,88,54,442.29 as on ot.o4.2022.

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After hearing learned counsel for the^petitioner and on due consideration, we are of the^{view that since} petitioner has availed its statutory remedy under Section¹⁷

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UB,J&SN,J W.P.No.24518 of 2022

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of the SARFAESI Act, it may pursue the said remedy. Additionally, if the petitioner deposits 15% of the outstanding dues as mentioned above directly with the respondent within a period of 30 days from today, respondent shall not take further steps pursuant to the aforesaid E-auction sa-le notice dated 28.04.2022. However, il there is any default by the petitioner in making the payment as above, it r.r,ould be open to the respondent to take necessary steps for recovery of outstanding dues in accordance with law.

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7 . This disposes of the Writ Petition. However, there shall be no order as to costs.

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As a sequel, miscellaneous applications pending,

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if any, in this Writ Petition, shall stand closed.

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D/-K.SAILESHI DEP REGI TRAR //TRUE COPY// SE OFFICER

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To;

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1 The Authorized Signatory, Karnataka Bank Ltd, Asset Recovery Management Branch Plot No.50, Srinagar Colony, Road No.3, Banjara Hills, Hyderabad-73 2 One CC to MS. P. HAMSA DURGA, Advocate IOPUC] J Two C.D. Copies

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4 One Spare Copy. MRC GJP 1-

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HIGH COURT DATED:0810612022

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ORDER

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WP.No.24518 of 2022

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.a-
IHE jiTAI 6
, 10 sEP 20t1 l.

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DISPOSING OF THE WRIT PETTTION WITHOUT COSTS