Point of Law : Procedural law is not to be a tyrant, but a servant, not an obstruction but an aid to justice.

JUDGMENT :

In the course of proceedings for enforcement of security interest created by the borrower, the secured creditor sold the secured asset under a private treaty. After confirmation of the sale and consequent registration of the document of title, the borrower approached the Debts Recovery Tribunal (for short, 'the Tribunal), challenging the sale including the steps initiated for enforcement of the security interest. By order dated 27.08.2021, the Tribunal directed maintenance of status quo over the property in question. The attempt of the auction purchaser to vacate the interim order before the Tribunal itself did not fructify due to the absence of Presiding Officers in the Tribunal. Hence the jurisdiction of this Court under Article 227 of the Constitution of India was invoked challenging the ad interim ex-parte order dated 27.08.2021 issued by the Tribunal. A relief to declare the securitisation application pending before the Tribunal as one without jurisdiction is also sought for.

2. When the original petition came up for admission, after hearing the petitioner as well as the secured creditor, this Court stayed the operation of the ad interim order issued by the Tribunal. Since both sides insisted on the original petition itself being disposed of, the matter was heard at length.

3. Petitioner claimed to be a bonafide purchaser of 64 cents of land comprising in Survey Nos. 228/07-1 & 228/07 of Vayalar East Village, Uzhuva Muri, Cherthala Taluk, Alappuzha District having purchased it under a private treaty from respondents 3 and 4 on 28-02-2020, as per the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the Act'). Petitioner asserted that it is a global company engaged in liquified natural gas and gas logistics, distribution and infrastructure solutions. It has been given the contract work to lay, build and operate the City Gas Distribution Network in three districts of Kerala including Alappuzha where the disputed property is situated. According to the petitioner, it purchased the property for Rs.3,15,00,000/-pursuant to the private treaty mentioned above.

4. After the property was purchased, the third respondent approached this Court through W.P.(C) No.16997 of 2020. By judgment dated 24.09.2020, this Court directed the Sub Registrar, Cherthala to register the sale certificate in accordance with law. Pursuant to the said judgment, the sale deed was registered on 11-12-2020 and according to the petitioner, it commenced construction of the time sensitive project. Petitioner claimed that the parent company of the petitioner is one of the world's fastest growing providers of Liquified Natural Gas and is committed to provide clear, secure and affordable natural gas to downstream customers in new markets around the world and further that, petitioner is an entity authorised by the Petroleum & Natural Gas Regulatory Board to market the natural gas to domestic, industrial and commercial customers. Petitioner further averred that, the property in dispute was acquired by the petitioner in furtherance of their objective to carry out obligations under the Petroleum and Natural Gas Regulatory Board Act, 2006 and that since the activity done by the petitioner in the property in dispute is governed by the provisions of the above mentioned Act, no interference is called for as provided under section 56 of the aforesaid Act.

5. According to the petitioner, the property involved in the dispute was identified and purchased by them to pursue their obligations bestowed upon it and the project is of utmost public importance. However, after commencement of their activities in setting up the plant, petitioner had to stare at an order of status quo issued by the Tribunal. Though petitioner attempted to vacate the interim order of status quo by filing a counter affidavit, from 23.09.2021 onwards, the Presiding Officers of the Tribunal either resigned or retired and