Disposed

Sri. Srikanth Reddy Kasu v. Bank of India

Telangana HC15 Jun 2022WP/25427/2022

Case brief

AI extract

What is this about?

The High Court of Telangana set aside the e-Auction order by directing the transfer of creditor recovery proceedings from Debts Recovery Tribunal-II to Debts Recovery Tribunal-I, Hyderabad, due to the unavailability of a Presiding Officer in the former forum.

What did the court decide?

Registrar of DRT-II directed to transfer S.A.I.R. No. 638 of 2022 to DRT-I, Hyderabad within 7 days for adjudication.

Sri. Srikanth Reddy Kasu Vs Bank of India — Banking and Recovery | Telangana HC (2022)

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

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WEDNESDAY ,THE FIFTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HON'BLE SRI JUSTICE UJJAL BHUYAN AND THE HON'BLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION NO: 25427 OF 2022

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Between:

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Sri. Srikanth Reddy Kasu, S/o K. Prakash Reddy Aged about 45 years, Occ . Business, Rl/o Flat No. 4446, Wing-3, 4th Block, Janapriya Metro Polies, Erragadda, Near Don Bosco High School, Hyderabad-500018.

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...PETITIONER

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AND

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Bank of lndia, Rep. by its Authorized Officer, Hyderabad Main Branch, Post Box No. 134, 5-8-659, Abids, Nampally Station Road, Hyderabad - 500 001

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...RESPONDENT

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Petition under Article 226 of lhe Constitulion of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue writ of Mandamus or any other appropriate writ, order or direction by setting aside the e-Auction Sale notice dated 26.05.2022 lixing the date of auction 27.06.2022, as without following the procedure contemplated under the Act as illegal, null and void without following due process of law and consequently direct Debts Recovery Tribunal - ll, Hyderabad to dispose the case SAIR No. 638 of 2022 on merits.

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lA NO: 1 OF 2022

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Petition under Section^'1 5'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be^pleased to stay of all further proceedings in pursuance of the E-Auction sale notice dated 26.05.2022 fixing the date of auction 27.06.2022 including taking^physical possession of the property and pass

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Counsel for the Petitioner: Ms.P.HAMSA DURGA

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Counsel for the Respondent: Ms.T. VIDYA RANI, SC for BOI

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The Court made the following: ORDER

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TTIE HONOURABLE SRI JUSTICE UJJAL B:IUI.AN

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AND

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THE HONOIJRABLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION No.25427 of 2022

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ORDER: (Per Hon'ble Sn Justice IJjjal Bhugan)

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Ht:ard Ms. P.Hamsa Durga, learned corrnsel for the petitioner and Ms. T.Vidya Rani, learned Standirrg Counsel for Bank ol' India i. e., respondent.

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Challenge made in this writ petition is to the recovery notice dated 26.05.2022 issued by the respondent whereby outstanding dues of the petitioner has been quantified by the respondent at Rs. 1,48,53,590.94, plus interest, c osts, expenses, etc. Present petition pertains to the schedule property at Serial No.3.

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It is submitted that petitioner has filt:d sr:curitisation application under Section 17 of the Sec rritisation and Reconstruction of Financial Assets and Enforcelnent of Security Interest Act, 2OO2 (briefly referred to herr:inafter as the 'SARFAESI ActJ before the Debts Reco,:ry Tribunal-ll, \

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2 I UB,J&SN,J W.P.No.25427 of 2022

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Hyderabad where it has been numbered as S.A(l.R).No.638 of 2022.

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With the grievance that there is no Presiding Officer in the Tribunal, the present writ petition has been filed.

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Learned counsel for the respondent has pointed out that the jurisdictional Debts Recovery Tribunal under Section 17 of the SARFAESI Act is the Debts Recovery Tribunal-I, Hyderabad, in which there is Presiding Officer and which Tribunal is functioning. She further submits that under Section 17 ol the SARFAESI Act, option is available to the borrower to file the securitisation application before any of the two Debts Recovery Tribunals situated at Hyderabad having regard to the fact that branch of the respondent bank is situated within the jurisdiction of Debts Recovery Tribunal-I, Hyderabad.

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Though transfer of securitisation application from one Debts Recovery Tribunal to another Debts Recovery Tribunal \ would require the approval of the Chairman of the Debts Recovery Appellate Tribunal, considering the peculiar situation confronting the petitioner in this case, we are of the view that it

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3 UB,J&SN,J W.P.l\o.25427 of 2022

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would meet the ends of^justice if Registrar ol the Debts Recovery TribunaL-II, Hyderabad is directed to transler the S.A(l.R).No.638 of 2022 to Debts Recovery Tribunal-I, Hvderabad.

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7 . Orclered accordingly.

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B. Registrar of Debts Recovery Tribunal-II, Hyderabad shall transfer S.A(I.R).No.638 of 2022 to Dt:bts Recovery Tribunal-I, Hyderabad within 7 days from the date of receipt of a copy of this order. On receipt of S.A(I.R).No.638 of 2022 on transfer, Debts Recovery Tribunal-I, Hyderabad shall be re-numbered and placed before the Bench inrmediately for necessary orders.

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9 This disposes of the Writ Petition. :{owever, there shall be no order as to costs.

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As a sequel, miscellaneous applications pending, if

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any, in this Writ Petition, shall stand qlosed.

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SD/.B.S VATHI DE EGISTRAR

//TRUE COPY//

TION OFFICER

To,

1 The Presiding Officer, Debts Recovery Tribunal-|, Hyder;rbad.

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22 The Authorized Officer, Bank of lndia, Hyderabad Main Eranch, Post Box The Registrar, Debt & Recovery Triburel -ll, Hyderabad, No 134, 5-8-659, Abids, Nampally Station Road, Hyderabad - 500 001.

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