M/s.SFC Marketing Pvt. Ltd and 7 others vs STATE BANK OF INDIA on 17 February 2021

: - O R D E R - :

1.0 This is a petition filed by the Petitioner / Assignee of the debt by the 1st Respondent Bank for substituting the petitioner in place of the original applicant/assignor. 2.0 The Petitioner submits that M/s.Reliance Asset Reconstruction Company Ltd., Mumbai is a Securitisation and Asset Reconstruction Company as per Section 3 of SARFAESI Act. By the deed of assignment dated 20.04.2017, M/s.State Bank of India assigned the loans/assets, together with all rights, title and interest of it along with financing documents, the security interest/assets, pledges, guarantees in respect of the loan of M/s.SFC Marketing Pvt. Ltd. to M/s.Reliance Asset Reconstruction Company Ltd. (SBI Bank RARC 035 Trust). It is further submitted that till date neither the borrower nor the guarantors have come forward to liquidate the dues in spite of communication given by the bank namely State Bank of India who have already filed the above OA and obtained DRC. Under these circumstances the present petition is filed seeking to substitute the petitioner viz. Reliance Asset Reconstruction Company Limited, Mumbai (SBI Bank RARC 035 Trust) in lieu of State Bank of

India and to proceed with the DRC in the above OA. Hence the present petition before this Tribunal. 3.0 Despite service of notice and opportunity to the respondents, the respondents did not choose to contest this petition. 4.0 The Point that arises for consideration is:- whether the petition can be allowed substituting the native applicant? 5.0 Point:- Whether the petition can be allowed substituting the native applicant? 6.0 At the outset it is to be stated that in terms of sub-section 5 of Section 5 of SARFAESI Act it reads as follows, the assignor can be substituted by the assignee of a debt. “5(5) On acquisition of financial assets under sub-section (1), the asset reconstruction company, may with the consent of the originator, file an application before the Debts Recovery Tribunal or the Appellate Tribunal or any court or other Authority for the purpose of substitution of its name in any pending suit, appeal or other proceedings and on receipt of such application, such Debts Recovery Tribunal or the Appellate Tribunal or court or Authority shall pass orders for the substitution of the [asset reconstruction company] in such pending suit, appeal or other proceedings.”

6.1 In so far as the subject dispute is concerned the OA has been disposed of in favour of the assignor bank, however proceedings under DRC No. 214/2016 are pending before the Ld. Recovery Officer. The subject assignment dated 20.04.2017 by the assignor/certified creditor bank is duly registered at SRO Triplicane. Thus, the petitioner has satisfied the requirements of law for it to be substituted in place of the native applicant/assignor, hence the petition can be allowed. The first respondent native applicant is hereby directed to substitute its name with that of the petitioner herein by effecting necessary amendments in the OA No.59/2015 within 10 days from the date of receipt of this order and shall file neat copy of the same by 08.03.2021. In default, the petition shall stand dismissed. On complying with the above conditions, the Registry shall issue amended final order by substituting the name of State Bank of India with M/s.Reliance Asset Reconstruction Company Limited and also DRC No.214/2016 with similar changes, as expeditiously as possible and communicate a copy of the amended RC and DRC to the concerned Recovery Officer. 6.2 The Petition is ordered accordingly. No costs. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 17th day of February, 2021)

Sd/-

(Dr.N.V. BADARINATH)

PRESIDING OFFICER

DRT-I, CHENNAI