IMPORTANT POINT
Failure to comply with undertakings and make required payments under the SARFAESI Act can lead to dismissal of the petition and permission for the bank to take possession of secured assets.

JUDGMENT

Manmohan, A.C.J. (Oral)

1. Present petition has been filed under Article 226 of the Indian Constitution seeking to restrain the Respondent No.1-Bank from taking the physical possession of the two immovable properties which are in name of the Petitioner herein (`secured assets') and from taking further proceedings in pursuance of the Notice issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (`SARFAESI Act'). In addition, a direction is sought to stay the order dated 13th May, 2022 passed by Debt Recovery Tribunal - III (`DRT') in S.A. No. 208/21 wherein the DRT dismissed the application of the Petitioner seeking an interim order to restrain the Court Receiver from taking physical possession of the secured assets and praying for extension of time to pay the balance amount due and payable to the Respondent No.1- Bank.

2. The Petitioner was duly served by the Respondent No.1-Bank with a demand notice dated 15th June, 2021 under Section 13(2) of the SARFAESI Act demanding an amount of Rs. 5,55,83,476.46/- along with interest from 01st June, 2021. The Petitioner filed an application bearing no. SA No. 208/2021 before DRT. In the meantime, Chief Metropolitan Magistrate (Central), Tis Hazari Courts, Delhi in MA No. 151/121 passed an order dated 17th December,2021 on an application filed by Respondent No. 1, Bank under Section 14 of the SARFAESI Act appointing Court Receivers and permitting the Respondent No.1-Bank to take over the physical possession of the secured asset.

3. The DRT initially vide order dated 04th February, 2022 dismissed the Petitioner's interim application seeking to injunct the Court Receiver from taking physical possession of secured assets. However, upon a further application made by the Petitioner, DRT vide subsequent order dated 17th February, 2022 granted a conditional stay subject to the Petitioner making a deposit of Rs. 40 lakhs with the Respondent No.1-Bank. Finally, vide order dated 13th May, 2022, DRT dismissed the said interim application after taking note that as against the outstanding sum of Rs. 5.50 crores (approximately) the Petitioner had deposited a sum of Rs. 1.50 crores.

4. The Petitioner preferred an appeal bearing Misc. Appeal No. 131/2022 before the Debts Recovery Appellate Tribunal (`DRAT') against the order dated 13th May, 2022, without depositing the pre-deposit amount as required under Section 18 of the SARFAESI Act. Therefore, DRAT vide order dated 15th July, 2022 directed the Petitioner to make a pre-deposit of 50% of the remaining amount of Rs. 3,35,83,476.76/- and directed that the appeal will be heard after the said deposit.

5. In the aforesaid facts, the Petitioner without making the pre-deposit, approached this Court by way of the present writ petition. At the hearing dated 13th September, 2022, the Petitioner agreed to deposit a sum of Rs. 25 lakhs in two instalments by 04th October, 2022 and another sum of Rs. 3.65 crores within sixty days from the said order. The Petitioner was directed to file an undertaking in terms of the order, which was duly filed by him on 21st September, 2022. The said order dated 13th September, 2022 was passed with the consent of the parties and the matter was fixed for 19th December, 2022. The order dated 13th September, reads as under:

"The hearing has been conducted through hybrid mode (physical and virtual hearing).

1. The case was passed over for the learned counsel for the petitioner to obtain instructions. Having done so, the parties have agreed to the following:

i) The learned counsel for the petitioner states that a sum of Rs.25 lakhs shall be paid to the R-1/Bank in two instalments by 04.10.2022, as under:

a) Rs.10 lakhs will be paid on or before 30.09.2022 and;

b) the remaining amount of Rs.15 lakhs will be paid on or before 04.10.2022.

2. The learned counsel for the petitioner submits that an endeavour will be made to pay another sum of Rs.3.65 crores within