SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2016 Supreme(AP) 561

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
P.V. Sanjay Kumar and B. Siva Sankara Rao, JJ.
Chief Manager/Auth. Officer, Bank of India – Appellant
Versus
Debts Recovery Tribunal, Hyderabad and Others – Respondents
Writ Petition No. 7631 of 2016
Decided On: 11-07-2016

Advocates Appeared:
For the Appellant : Vidya Rani.
For the Respondent: Narayana Reddy.

Headnote:

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section 13(2), 13(4) and 31 - Respondent-firm represented by its partners/respondent availed financial assistance and created equitable mortgage by deposit of title deeds pertaining to the landed property with poultry sheds and with building which are standing in the name - Respondent in different extents and for the debt classified as non-performing asset the bank initiated measures for recovery of the secured debt under Section of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act demand notice and for nonpayment, issued possession notice under Section of the Act and proceeded to take possession of the mortgaged properties for their failure to pay despite undertaking to pay - Having received the possession notice supra the firm and its partners supra filed claiming as if the lands are agricultural lands and are exempted by Section of the Act from the applicability of the Act among other grounds - It is further averred that filed before the Chairman DRTH who is the in-charge presiding officer from there was an interim order granted in which reads list the matter for hearing at Hyderabad till such time the defendant-bank should not make any further action against the secured assets of the applicant - Bank filed counter affidavit on opposing the above interim order, but the case was not taken up for hearing due to non sitting of the presiding officer and subsequently posted for hearing but the presiding officer could not take up for hearing of said petition - Interim orders operate only till for not extended by the Tribunal from time to time subsequently – Held, Court held that during terminal point of the operation of the restrained when the expression in the mean time is arguable - That expression takes its colour from the context their words of relation referred not only to a time - Therefore the status quo is to end on that is the outer terminal point of the aforesaid order - Once the law of the land in interpreting the words in the mean time by fixing a date for hearing it is categorically that the outer limit to terminate the force of the order is the next hearing date fixed - Writ petition that the time given by passing the interim order as mean time cannot be construed of the order terminates unless extended - respondents 2 to 4 that they filed any application for extension of the interim dated to contend it can be allowed - writ petition filed by the Bank with affidavit of the Bank Manager spells out that the interim order is in force and preventing the bank to its prejudice from proceeding further under the provisions - It is clear therefrom that the Bank is also giving respect to the order dated though it is not in force after as detailed supra by the bank simply relying on the general blanket illegal order passed by the Registrar as per the alleged - Petition is disposed.

ORDER :

1. The Bank of India, Mehidipatnam Branch represented by its Chief Manager maintained the writ petition against the five respondents including the Debts Recovery Tribunal, Hyderabad (for short 'DRTH'), M/s. Pratap Poultry Farm, a partnership firm represented by its partners viz., L.V. Pratap Reddy and L. Santha and the Union of India represented by its Secretary, Banking Division, New Delhi. The prayer in the writ petition is to call for the records pertaining to the order (notice) reference F. No. 31/1/2000-DRT (H), dated 29.05.2015 issued by the 1st respondent and to quash the same as illegal, arbitrary and unconstitutional and consequently to declare the orders dated 09.11.2015 are not in force so as to permit the petitioner-creditor Bank to go for public e-auction of the security interest/secured assets and pass such other just orders. The affidavit filed in support of the writ petition of the Chief Manager of the petitioner-Bank supra reads that the 2nd respondent-firm represented by its partners/respondent Nos. 3 and 4 availed financial assistance and created equitable mortgage by deposit of title deeds pertaining to the landed property with poultry sheds and with building which are standing in the name of Sri L.V. Pratap Reddy, 3rd respondent, in different extents and for the debt classified as non-performing asset (for short, 'NPA'), the bank initiated measures for recovery of the secured debt under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, 'the Act') demand notice and for nonpayment, issued possession notice under Section 13(4) of the Act and proceeded to take possession of the mortgaged properties, for their failure to pay despite undertaking to pay. Having received the possession notice supra, the firm and its partners supra filed S.A. No. 478 of 2015 claiming as if the lands are agricultural lands and are exempted by Section 31 of the Act from the applicability of the Act among other grounds including against classification as NPA despite the same is duly classified and the lands are agricultural lands, nor is in use as such, much-less capable of being used for agricultural purposes from different activity is running therein. It is further averred that in S.A. No. 478 of 2015 filed before the Chairman, DRTH who is the in-charge presiding officer from Calcutta, there was an interim order granted in I.A. No. 3312 of 2015 dated 09.11.2014 which reads 'list the matter for hearing on 18.11.2015 at Hyderabad, till such time the defendant-bank should not make any further action against the secured assets of the applicant. The bank filed counter affidavit on 18.11.2015 opposing the above interim order, but the case was not taken up for hearing due to non sitting of the presiding officer and subsequently posted for hearing but the presiding officer could not take up for hearing of said petition. The interim orders operate only till 18.11.2015 for not extended by the Tribunal from time to time subsequently. Further, the postings are given by the Tribunal from time to time of the S.A. No. 478 of 2015 viz., 04.12.2015, 14.12.2015, 22.12.2015, 20.01.2016, 22.01.2016, 10.02.2016 and 21.03.2016 for no regular sitting of the presiding officer in DRTH. Further, on enquiry, it came to know that, an administrative order dated 29.05.2015 was passed by the Tribunal under the signature of the Registrar, DRT as follows:

"Ld. Advocates and the parties are put to notice that in the matters where ad-interim orders are passed till a particular date or next date of hearing and in the event the Hon'ble Presiding Officer is not sitting at Hyderabad on the said date, the ad-interim orders in such matters would be extended and adjourned to the next immediate date of the sitting of the Hon'ble Presiding Officer at Hyderabad.

This issues with the directions of the Hon'ble Presiding Officer."

2. It is contended that by virtue of said orders of the Tribu














Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top