Disposed

M/s N Shine Industries v. Bank of Baroda

Telangana HC2 Feb 2022WP/5614/2022

Case brief

AI extract

What is this about?

Writ petition challenging possession notice under SARFAESI Act dismissed with leave to deposit dues. Petitioner directed to approach Debts Recovery Tribunal II, Hyderabad. Interim stay granted conditionally upon deposit of outstanding amount within thirty days.

What did the court decide?

Conditional stay of proceedings granted pending deposit of outstanding dues of Rs. 30,53,357.53 within thirty days. Writ petition disposed of. Petitioner directed to proceed before Debts Recovery Trib

M/s N Shine Industries Vs Bank of Baroda — 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 SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND

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THE HONOURABLE SMT JUSTICE P. SREE SUDHA

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WRIT PETITION NO: 5614 OF 2022

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Between:

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M/s N Shine lndustries, Rep By its Prop Smt G. Hemalatha Wo G. Srinivasa^Rao,Aged about 44 Years, Occ. Business, R/o^{Flat No 406, 3rd Floor, Kancham Residency, Block} No 6, Gayathri Nagar, Jeedimetla^Village, GHMC Quthbullapur^{Circle,Quthbullapur} l.4andal, Ranga Reddy District, Telangana 500 055.

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...PETITIONER

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AND

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Bank of Baroda, Rep. by its authorized officer,^{TadepallygudemBranch,} Opp. Amrutha Hospital, Near Fire Station,^{KN Road,Tadepallygudem, W.G.District,} Andhra Pradesh - 534 101

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...RES''NDENT

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Petition under Article 226 of the^{Constitutionof lndia praying that in the} circumslances statedⁱⁿ the^{affidavit filed therewith,the High Court may be pleasedto} pass order or orders direction more particularly in the nature of Writ of^{Mandamus or} any other appropriate writ,^{order or directionto set asidethe advocate Commissioner} notice dated 19.01.2022 reierring^{Crl.lvl.P.No.34412021in pursuanceof the} possession notice dated 19.06.2021 in respect of^property All that the^part of^the property residential Flat bearing No 406, Admeasuring 1077 Sq. Feet along^with undivided share of land^admeasuring 37^{Sq Yardsout of total extant of 1200Sq.} Yards in the building Complex^{Kacham Residencyin Jeedimetla Village, Outhbullapur} N,4andal, Ranga Reddy District^{as without followinglhe 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. 88 of} 2022 on merits.

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lA NO: 1 OF 2022

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Petition under Section¹⁵¹ CPC^{prayingthat in the circumstances statedin the} affidavit filed in support of^{the petition, the HighCourt may be pleasedTo stay of all} further proceedings in^pursuance of^{the advocate commissioner noticedated} 19.01.2021 referring that^{in pursuanceof the CrlN/PNo 344of 2021 including taking} physical possession of the^property.

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Counsel for the Petitioner:^{Ms. P. HAMSA DURGAFORSRl.D. RAGHAVULU}

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Counsel for the^{Respondent:NONE APPEARED}

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The Court made the following:^ORDER

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HONOURABLE^SRI JUSTICE^{UJJAL BHUYAN} AND

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HONOURABIJ^{SMTJUSTICE P. SREE SUDHA} W'P'No'5614^{of 2022}

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Qg1fu1:^{@erHon'btctn lunie UialBht!d')}

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Fleard^{lvG. P.FIamsaDurga, leamed counselfor the petitioner'} 2. By^{filirrC this} Petition^{underAnicle 226 ofthe} Constitution^{of India,} Petidoner^{has challenged legality and validity of the} notice dated^{19.01,2022issuedby the Advocate C'ommissioner to hand} over physical^{possession of the schedule propeny within fifteen dals'} 3. It appean^{that petitioner had availedcredit facilities from the} respondent in^the lear^{2016 for which' the schedule Propeftywas} mongaged.^{The amountavailedof as loanwas Rs'30 lakhs' Allegingthat} petitioner^{had defaulted in repayment' respondentinitiatedproceedings} against the^{petitioner under the Securitisationand Reconstructionof} Financial^{Assetsand Enforcement of Security Interest Act' 20a2 (for} shon^{'the SARFAESI Act)'As a consequence of such action'} respondent^{obtainedwarrantfrom the jurisdiaionalChief Metropolitan} lvlagistrate^{appointing AdvocateCommissionerfor takingover physical} It was thereafter,^{that imPugned} possession of^{the schedule} ProPerty' notice came^{to be issued.}

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In the meanwhile,^{petirionerhas challengedthe action takenbythe} respondent by^{filing securitisation application under Section 17 of the} SARFAESI^{Act before the DebtsRecovery Tribunal-Il, Hydenbad (for} shon'the Tribunal),^{which has been numberedas S'A'I'RNo'S8of 2022'}

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Leamed counsel^{for the petitionersubmitsthat there is no} Presiding Officer^{of the Tribunal thereby, renderingthe Tribunal non-} functional. In such^{circumstances,} Petitioner^{has beencomPelledto} approach this Coun.

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After^{hearing leamed counselforthe petitionerand on due} consideration,^{we are of the view that since petidonerhasalready availed} its remedy under Section^{17 of the SARFAESI Act, it wouldbe iust and} proper to relegate the Petitioner^{to the forum of the Tribunal to Pursue its} remedy. However,^{if the petitionerdeposis15oloof the outstanding dues'} which was quantified^{at Rs'30,53,357.53as on Al'Ol'2)2l,within a period} of thiny dap from^{today, respondent shall nottake further steps pursuant} ro rhe impugned^{notice dated 19.01.2022. However,if there is any} default on the^{pan of the petitionerin makingthe paymentas above' it} would be open to the^{respondentto takefunherstepsin accordance with}

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law

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7 . Vrit Petition^{is, accordingly,disposed of' Related interim} application^{is also disposed of.}

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j SD/.T.JAYASREE ASSISTANT REGISTRAR i,L,

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No costs.

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,TRUE COPY// SECTION OFFICER

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To,

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The Registrar, Debts^{RecoveryTribunal-ll,Hyderabad.}

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Z. ffre Auiirorized^{Officer,Bank6f Baroda,Tadi;pallygudem Branch,Opp Amrulha} - Uoipitif ,'Near Fire Staiion, KN Road, Tadepailygudem, WG District Andhra Pradesh - 534 101.

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