SRI RAGOLU RAGHUPATI NAIDU vs CENTRAL BANK OF INDIA on 30 December 2022

ORDER

The Applicant has filed the present petition under section 5 of the Limitation Act. The Applicant has submitted that the schedule property was sold on 20-1-2022 in pursuant to e-auction sale notice dated 18-12-2021 issued by the respondent bank, but the applicant came to know about the confirmation of the sle of the SA schedule mentioned property upon receipt of the letter issued by the respondent bank informing me to take the balance amount lying with the respondent bank. The applicant further declares that due to the arm twisting method adopted by the respondent bank, the applicant could not file the main SA within time. Therefore, there is a delay of 173 days in challenging the sale held on 20-1-2022 in pursuant to e-auction sale notice dated 18-12-2021 issued by the respondent bank issued against the SA schedule mentioned property. Therefore, the applicant is filing this petition for condoning of delay of 173 days.

2. The Applicant has prayed to condone the delay of 173 days in filing the SA.

3. The Authorised Officer of the Central Bank of India has filed counter on 5-12-2022 and has prayed to dismiss the MA 53/22 and suit with costs. The Respondent Bank has denied all the allegations alleged by the Applicant. The Respondent has submitted that the Petitioner did not stick to the repayment schedule despite repeated demands and reminders of the respondent and the loan account was classified as NPA. The Respondent Bank initiated proceedings under the SARFAESI Act and issued a demand notice dt.26-8-2019 under section 13(2) of the SARFAESI Act to the Petitioner demanding them to pay the entire outstanding amount of Rs.85,86,940/- together with interest within 60 days on receipt thereof. The Petitioner failed to make any payment despite receiving the notice and as such the respondent issued a notice dt.21-10-2020 under section 13(4) of the SARFAESI Act and took symbolic possession of the schedule properties and affixed the same on the properties and also got published the same in two local newspapers as provided under the Act. The respondent bank, to sell the schedule property, has issued an e-auction sale notice on 27-10-2021 and published the same in newspapers on 19-12-2021 by fixing the auction date on 20-1-2022.

4. The Respondent has further submitted that no valid or justifiable ground is raised to explain the delay of 173 days and also further submitted that there is no proper explanation as to what prevented the petitioner from approaching the Debts Recovery Tribunal within the stipulated time. As such, the present application seeking stay is not maintainable and untenable.

5. The Applicant has also not complied the order of Hon'ble High Court in toto passed in WP No.131301/22. The Applicant has filed other writ petition no.14222/22 and Hon'ble High Court considering the material available on record, dismissed the said writ petition observing that there are no grounds to consider the request of the Petitioner.

6. The Applicant in para-17 of the counter, has submitted that the sale certificate was issued to the successful bidder by receiving the entire sale consideration on 17-5-2022. The sale deed in the name of the successful bidder Auction Purchaser, was registered on 1-6-2022 and physical possession of the property was handed over to him on the same day.

7. As per principle laid down by the Hon'ble Supreme Court, the SARFAESI appeal is a kind of suit. As per section 17 of the SARFAESI Act, any person may make an application to the DRT within 45 days. In the present case, the Applicant has not filed petition in time. The Applicant has filed the case with delay of 173 days. The reason explained by the Applicant to condone the delay of 173 days is also not proper. The Applicant has not complied even the order of the Hon'ble High Court.

8. On the basis of above discussion, I dismiss this MA 53/22 on contest but without costs.

(Dictated to Steno and transcribed by him and corrected and pronounced by me in the open court on 30^th December 2022)

30.12.2022 PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL