MS HERO WIRETEX LTD vs CANARA BANK (SYNDICATE BANK) on 18 October 2021

ORDER

This MA is filed by the applicant/petitioner to direct the respondent bank to release item No.1 property as mentioned in Rule 8(6) notice dt.5.2.2020 which is mentioned as property No.3 in the possession notice dt.20.8.2019 standing in the name of Sri G.Bhaskar Rao and release the concerned tile deeds/documents and discharge the mortgage on the property immediately on receipt of sixth installiment.

2. According to the case of the petitioner that vide orders dt.27.11.2020 in the above SA the Tribunal directed the petitioner/applicant to discharge the entire debt of Rs.19,82,91,697.84ps together with interest under SARFAESI expensesin 12 equal bi monthly installments starting from January 2021 and the respondent bank upon receiving 3 (three) bi-monthly installments from the applicants/petitioners, shall release the item No.2 property as mentioned in rule 8(6) notice dt.5.2.2020 which is mentioned as Property No.4 of possession notice dt.20.8.2019 which is the property in the concerned title name of Smt.G.Susheela and release the concerned the and deeds/documents and discharge the mortgage on the property subsequently after receiving another 3 (three) bl-monthly installments from the applicants/petitioners the respondent bank shall release the item No.1 property as mentioned in rule 8(6) notice dt.5.2.2020 which is mentioned as Property No.3 of the possession notice dt.20.8.2019, which is the property in the name of Sri G.Bhaskara Rao and release the concerned tite deeds/documents discharge the mortgage on the property. It has been stated that they have paid bi monthly installments and by 27.1.2021 they have paid Rs.1,66,00,000/- by 30.3.2021 and they paid a further amount of Rs.1,65,25,000/- and by 23.5.2021 they paid Rs.1,64,75,000/- and thus in total by 23.5.2021 they have paid Rs.4,96,00,000/-. It has been stated that as the bank has to release the title deeds pertaining to the property of Smt.G.Susheela and the issue is pending they have paid further installments i.e., four and five and they are ready to pay the sixth installment also and if they pay sixth installment the bank may refuse to release the document of Sri G.Bhaskar Rao also and under these circumstances they are filing this petition for a direction to the respondent bank to release item No.1 property as mentioned in Rule 8(6) notice dt.5.2.2020 which is mentioned as property No.3 in the possession notice dt.20.8.2019 standing in the name of Sri G.Bhaskar Rao and release the concerned tile deeds/documents and discharge the mortgage on the property immediately on receipt of sixth installment.

2. Counter has been filed on behalf of respondent bank stating that the petitioner has not complied the orders dt.27.11.2020 of the DRT, Visakhapatnam in IA.1562 of 2020 in SA.333 of 2020 and filed the MA.19/2021 which is subjudice before the Hon'ble High Court in the WP wherein stay was granted. It has been stated that the petitioner addressed a letter dt.25.5.2021 by representing that they have paid 3 installments and requested to release title deeds relating to Smt.G.Susheela by filing MA.19/2021 in which the respondent bank filed a detailed counter and the Tribunal allowed the MA directing to release the documents of G.Suseela and aggrieved by the orders of the Tribunal the respondent bank filed WP.No.18462/2021 and filed IA.1/2021 and the Hon'ble High Court granted stay of operation of further proceedings and the same was extended by the Hon ble High Court. It has been stated that they have separately filed an appeal against all the orders in SA.333/2019 before the Hon'ble DRAT, Kolkata vide Dairy No.542/2021 and the notices of the Appeal were also served on the petitioners. It has been stated that as can be seen from the orders passed by this Tribunal in IA.1562/2020 dt.27.11.2020 at para 7 observed that ".subsequently after receiving another 3 (three) bi-monthly installments from the applicants/petitioners the respondent bank shall release the item No.1 property as mentioned in rule 8(6) notice dt.5.2.2020 which is mentioned as Property No.3 of the possession notice dt.20.8.2019, which is the property in the name of Sri G.Bhaskara Rao and release the concerned tite deeds/documents". Therefore, it is clear that the petitioners have to comply the orders of the Tribunal of payment of 4th, 5h and 6th bi-monthly installments for the purpose of getting the documents of G.Bhaskara Rao as per the installiments furnished by the respondent bank and therefore the above application for release of the documents of G.Bhaskara Rao is premature, without payment of the 6h installment and by giving an undertaking for payment of 6" installment by the petitioner, they cannot seek for release of documents of G.Bhaskara Rao as it is against the spirit of the orders passed by the Tribunal dt.27.11.2020 and as such on that ground itself the above application is liable to be dismissed. It has been stated that in view of the matter directiy is subjudice before the Hon'ble High Court and also before the DRAT, Kolkata the Tribunal cannot exercise its extraordinary discretion in entertaining the above matter. There are no merits in the above petition and is liable to be dismissed.

3. Heard both sides. Perused the petition and counter averments. The Tribunal vide orders dt.27.11.2020 in the above SA has directed to pay the entire debt due of Rs.19,82,91,697.84ps aong with future interest and SARFAESI expenses including future interest to the respondent bank in 12 equal installments payable bi-monthly (i.e., in every 2 months) into the respondent bank starting from January 2021 to be deposited by the applicants/petitioners into the respondent bank and the respondent bank Installments from the bl-monthly upon recelving 3 (three) bl- monthiy Installments from the a p p l i c a n t s / p e t i t i o n e r s , shall release the item No.2 property as mentloned in rule 8(6) notlce dt.5.2.2020 which Is mentioned as Property No.4 of possession notice dt.20.8.2019 whlch Is the property in the name of Smt.G.Susheela and release the concerned title deeds/docurments and discharge the mortgage on the property and subsequently after receiving another 3 (three) blmonthly Installments from the a p p l i c a n t s / p e t i t i o n e r s the respondent bank shall release the Item No.1 property as mentioned In rule 8(6) notice dt.5.2.2020 which Is mentloned as Property No.3 of the possesslon notice dt.20.8.2019, which Is the property in the name of Sri G.Bhaskara Rao and release the concerned title deeds/documents discharge the mortgage on the property and the respondent bank may file Part Satlsfaction Memo in OA.68/20 at DRT, Hyderabad on paymentof installments by the applicants. In the meanwhile the respondent bank was also directed not to take any coerclve action under SARFAESI Act in respect of schedule mentioned and the respondent bank is further directed to recelve the entire outstanding amount plus interest and expenses incurred under SARFAESI Act in respect of schedule property from the from the applicants/petitloners lin 12 installments commencing from January 2021 payable bi-monthly as stated supra, and after recelving the amounts bl- monthly from the applicants, the respondent bank shall have to release the propertlesof the applicants/petitioners as stated supra to the to the applicant/petltioner and dlscharge the personal mortgage and mortgage of the concerned property and deliver all the documents to the applicants. As per the counter filed by the respondent bank in the petition, it is admitted that the petitioners pald total amount of Rs.4,96,00,000/- and the issue with regard to the release of the documents of Smt.G.Suseela are pending as the respondent bank fled WP.No.18462/2021 before Hon ble High Court and also before Hon'ble DRAT, Kolkata in view of orders passed in MA.19/2021 only filed by applicant for release of property in the name of G.Sueela, So far as thls petitlon is concerned, it is with regard to release of item No.1 property as mentioned in rule 8(6) notice dt.5.2.2020 which is mentioned as property No.3 of the possesslon notice dt.20.8.2019 in the name of Sri G.Bhaskara Rao. As can be seen from orders passed in the above SA on 27.11.2020, it is ordered that subsequently after receiving another 3 (three) bi-monthly installments from the applicants/petitioners the respondent bank shall release the item No.1 property as mentioned in rule 8(6) notice dt.5.2.2020 which is mentioned as Propety No.3 of the possession notice dt.20.8.2019, which is the property in the name of Sri G.Bhaskara Rao. Along with counter, the respondent bank itself filed letters dt.4.9.2021 and 23.9.2021 addressed by HERO Wiretex Ltd., applicant to the respondent bank mentioning the payments in respect of 4" installment and 5th installment as per the orders passed in SA.333/2019 dt.27.11.2020, therefore, it is clear that the applicants have complied the 4 T and 55h installments as per the orders and now they are ready to pay the 6 installment for release of the property of Sri G.Bhaskara Rao and therefore seeking direction to the respondent bank for release of said property after payment of 6th installment. Therefore, in view of the above circumstances, since the 4" and 5 installments as per the orders dt.27.11.2020 have paid by the applicants, as per the orders dt.27.11.2020 passed in the above SA, the respondent bank has to release the property of Sri G.Bhaskara Rao after payment of 6" installment by the applicant. Hence the respondent bank is directed to release the item No.1 property as mentioned in Rule 8(6) notice dt.5.2.2020 which is mentioned as property No.3 in the possession notice dt.20.8.2019 standing in the name of Sri G.Bhaskara Rao and release the concerned tile deeds/documents and discharge the mortgage on the property immediately on receipt of sixth installment from the applicant as per the orders dt.27.11.2020 in SA.333/2019. Accordingly this MA.37 of 2021 is disposed of. [GIVEN UNDER MY HAND AND SEAL OF THIS TRIBUNAL ON THIS THE 18h DAY OF OCTOBER, 2021] PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL VISAKHAPATNAM