Ramesh R. Patel vs STATE BANK OF INDIA on 6 October 2020

CASE NO. Appeal-38/18

<table border="1"><thead><tr><th data-bbox="34 87 214 114">DATE</th><th data-bbox="214 87 766 114">DESCRIPTION OF THE ORDER</th><th data-bbox="766 87 937 114">REMARK</th></tr></thead><tbody><tr><td data-bbox="34 114 214 141">06.10.2020</td><td data-bbox="214 114 766 141"><u>Exh-16</u> Appeal No.38/2018</td><td data-bbox="766 114 937 141"></td></tr><tr><td data-bbox="34 141 214 941">Present :</td><td data-bbox="214 141 766 941"><p>The hearing is conducted through virtual mode amid COVID-19 pandemic restrictions.</p><p>Mr.Umesh Shukla and Ms.Abhineeta Chaturvedi, Ld. Counsels for the Appellant<br/>Mr.K.N.Shah, Ld. Counsel for the respondent/Financial Institution</p><p>The Appellant had already filed one I.A.No. 252/20 and Ld. Counsel for the respondent/Financial Institution submitted that he has no objection, if this appeal may be disposed of, in terms of stipulations made in I.A.No. 252/20.</p><p>I have heard the Ld. Counsel for the parties and I would like to reproduce I.A.No. 252/20 in verbatim to avoid any confusion in future between the parties -</p><p><i>"The appellant submits as under:</i></p><ol><li><i>1. The appellant has filed the present appeal under section 30 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 against the order dated 24^th August, 2018 passed in Recovery Proceedings no. 195 of 2007. The appellant seeks to quash and set aside such order on the grounds stated in the memorandum of appeal.</i></li><li><i>2. The first respondent has filed their preliminary objections and reply to the appeal.</i></li><li><i>3. During the pendency of the appeal, it appears that respondent no.1 - State Bank of India ("SBI") has assigned their debt in respect of Respondent No.2 - Shree Bansidhar Spinning &amp; Weaving Mills Private Limited (in liquidation) to, or in favour of, a company called Rare Asset Reconstruction Limited ("Assignee RARE") registered as a securitization and asset reconstruction company as per the provision of the SARFAESI Act. The Respondent No.1 - SBI has produced the Assignment Agreement dated 30.03.2019 of the present Appeal. It is therefore necessary to substitute the assignee - RARE in place of assignor / original respondent no.1 - SBI. A separate interim application for such substitution/ amendment is made in this regard.</i></li><li><i>4. During the pendency of the appeal, various efforts for settlement / resolution in regards to the possession, rights and claims of the Appellant in respect of Bansidhar House Final Plot no. 323/2, opposite Girish cold drinks, Off CG Road, Sardar Patel Nagar, Ellisbridge were made between the</i></li></ol></td><td data-bbox="766 141 937 941"></td></tr></tbody></table>

CASE NO APPEAL-38/18

<table border="1"><thead><tr><th data-bbox="51 91 228 115">DATE</th><th data-bbox="228 91 781 115">DESCRIPTION OF THE ORDER</th><th data-bbox="781 91 951 115">REMARK</th></tr></thead><tbody><tr><td></td><td><p>appellant and Assignee RARE. As a result thereof, the appellant wrote one letter dated 27th December, 2019 to Assignee RARE. In the said letter, the appellant inter-alia, stated as under:</p><p>"In connection with the above, I submit the following proposal for settlement for your kind consideration:</p><ol style="list-style-type: none;"><li>a. My possession of the property pursuant to the agreement to lease dated 28^th December, 1979 and my rights under such agreement may be protected till the final outcome of civil suit no. 5680 of 1997 and all appeals and other proceedings arising therefrom till the Supreme Court.</li><li>b. I have no objection if you sell such property in execution proceedings subject to my rights under the agreement dated 28^th December, 1979 and my possession and the protection enjoyed by me on account of the interim order passed in civil suit no. 5680 of 1997.</li><li>c. In case if you accept my proposal, we may jointly approach the Hon'ble Debt Recovery Tribunal to dispose off the appeal no. 238 of 2018 on following terms.<ol style="list-style-type: none;"><li>1. The order dated 24 august 2018 rejecting my objections may be set aside.</li><li>2. You may sell the said property subject to the aforesaid proposals and inform all the prospective bidders about the same, particularly my possession and my rights under the agreement dated 28^th December, 1979 in civil suit no. 5680 of 1997 and the interim order passed in it.</li><li>3. I will continue to pursue my rights and remedies arising from such agreement in civil suit no. 5680 of 1997 and all appeals and other proceedings arising therefrom.</li></ol></li></ol><p>In case if you accept my proposal, we may approach the Hon'ble Debt Recovery Tribunal for disposal of appeal no. 38 of 2018."</p><p>A copy of the letter dated 27.12.2019 of the Appellant given to the Assignee RARE is annexed herewith as Annexure 1.</p><ol style="list-style-type: none;"><li>5. The Assignee RARE ( assignee of Respondent no.1 – SBI) has vide its letter dated 7.01.2020 has accepted such proposal and issued no objection in accepting the offer of the appellant. The Assignee RARE ( assignee of Respondent no.1 – SBI) has also consented to the appellant approaching this Hon'ble Tribunal to have the appeal disposed of as per such proposal. A copy of the letter dated 7^th January, 2020 written by Assignee RARE ( assignee of Respondent no.1 – SBI) is annexed herewith as Annexure 2.</li><li>6. The Appellant therefore submits that separate interim application filed by the Appellant for substitution of original Respondent No.1 – SBI with Assignee RARE be allowed and RARE be substituted in place of SBI. Further the present interim application be allowed and impugned order</li></ol></td><td></td></tr></tbody></table>

CASE NO. Appeal-38118

<table border="1"><thead><tr><th data-bbox="38 91 215 115">DATE</th><th data-bbox="215 91 768 115">DESCRIPTION OF THE ORDER</th><th data-bbox="768 91 933 115">REMARK</th></tr></thead><tbody><tr><td></td><td><p><i>dated 24.08.2018 so far it relates to the objection filed by the Appellant be quashed and set aside and directions to sell the concerned immovable property in terms of the offer of the Appellant accepted by the Assignee RARE be issued to the learned Recovery Officer.</i></p><p>7. In view of the aforesaid, the appellant prays as under:</p><p>a. <i>The Hon'ble Tribunal be pleased to set aside the order dated 24^th August, 2018 passed by the recovery officer in Recovery Proceedings no. 195 of 2007, with a direction to the recovery officer to put the property to auction subject to the terms and conditions mentioned in the letter dated 27^th December, 2019 duly accepted by Assignee RARE ( assignee of Respondent no.1 – SBI) vide letter dated 7^th January, 2020.</i></p><p>b. <i>This Hon'ble Tribunal be pleased to grant such other and further reliefs as deemed fit and proper in the facts of the case and interest of justice."</i></p><p>As the Ld. Counsel for the respondent/Financial Institution has submitted his no objections to dispose of this appeal in terms of contentions made in I.A.No. 252/20, so this appeal is disposed of accordingly.</p><p>Both the parties would be bound by the terms and conditions stipulated in I.A.No. 252/20. It is made clear that parties have settled out of court and this Tribunal has not given any adjudication on merits.</p><p>Keeping in view compromise between the parties, order dtd 24.08.2018, vide which, objections of present appellant were dismissed is modified to the extent that respondent/Financial Institution may proceed against the properties of appellant, but subject to rider, as made in para 4(c)(2 &amp; 3) of I.A.No. 252/20.</p><p>Accordingly, the respondent/Financial Institution would be at liberty to proceed under Recovery of Debts and Bankruptcy Act, 1993, but would be bound to follow and observe the rider agreed.</p><p>Appeal is accordingly disposed of.</p></td><td></td></tr><tr><td></td><td></td><td><p>(VINAY GOEL)<br/>PRESIDING OFFICER<br/>DRT-I, AHMEDABAD</p></td></tr></tbody></table>