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2015 Supreme(Mad) 3031

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SATISH K. AGNIHOTRI & K.K. SASIDHARAN, JJ.
C. Mohan & Ors. – Petitioners
Vs
Authorised Officer, Allahabad Bank 98 & Ors. – Respondents
W.P. Nos.28305 and 28306 of 2015 and M.P.Nos.1 and 1 of 2015
Decided On : 06.10.2015

Advocates:
Advocate Appeared:
For the petitioners: Mr. N.R. Chandran, Senior Counsel for Mr. K.J. Parthasarathy in both W.Ps.
For the respondents: Mr. K.S. Kaviarasu for Mr. K. Vignesh Karthik for R-4 No appearance for RR1 to 3

Interim orders cannot be vacated without specifying reasons and without indicating any violation of conditions imposed on the parties.

Headnote:

Interim Orders - Debt Recovery Appellate Tribunal - The court set aside the impugned orders vacating the interim stay granted earlier, as the orders did not specify reasons for vacating the stay and did not indicate any violation of conditions imposed on the petitioners.

Fact of the Case:

The petitioners challenged the order of the Debt Recovery Appellate Tribunal vacating the interim stay granted earlier without specifying reasons.

Finding of the Court:

The court found that the impugned orders did not reflect what transpired in the court to justify vacating the interim stay and did not indicate any violation of conditions imposed on the petitioners.

Issues: The issue was whether the interim orders granted earlier could be vacated without specifying reasons and without indicating any violation of conditions imposed on the petitioners.

Ratio Decidendi: The court set aside the impugned orders and directed the appellate tribunal to maintain the stay order and consider the case on merit expeditiously.

Final Decision: Both writ petitions were allowed, and the connected miscellaneous petitions were closed. No costs were awarded.

ORDER :

SATISH K. AGNIHOTRI, J.


The challenge in these petitions is to the order dated 27th August, 2015 passed in RA(SA)16 of 2015 and RA(SA)15 of 2015 by the Debt Recovery Appellate Tribunal, Chennai, whereunder the interim order of stay granted earlier was directed to be vacated.

2. Shri N.R. Chandran, learned Senior Counsel appearing for the petitioners submits that the interim stay granted on 5th March, 2015 was vacated without assigning reasons. It is further contended that when the matter was taken up in the first round, a request was made to pass over the matter. Instead, the impugned orders, vacating the stay granted earlier were passed. The learned Senior Counsel would further urge that once the interim order has been granted, it is necessary to specify reasons for vacating the same. The Tribunal has passed the order, vacating the interim stay granted earlier without application of mind and also without assigning justifiable reasons for the same.

3. Notwithstanding the service of notice, all respondents, except 4th respondent, had chosen not to appear. The fourth respondent is represented through Mr. K.S. Kaviarasu, learned counsel representing Mr. K. Vignesh Karthik, learned counsel. He fairly submits that the matter may be sent back for reconsideration.

4. The issue involved herein is as to whether the interim orders granted earlier can be vacated in such a manner, whereunder no reasons have been specified. On the earlier occasion, i.e., 5th March, 2015, the first respondent was directed not to disturb the possession as the petitioners had deposited a sum of Rs.13,00,000/- out of Rs.17,07,909/-and a proper detailed order was passed. Subsequently, the impugned orders were passed without assigning reasons.

5. We have perused the orders, which run into two sentences. It does not reflect as to what has transpired in the Court, which induced the learned Chairperson of the Debt Recovery Appellate Tribunal, Chennai to vacate the stay granted earlier. The interim order of stay granted earlier was not subject to any condition and also the impugned orders did not indicate that any condition imposed on the petitioners was violated, necessitating vacation of the interim stay granted earlier.

6. For the reasons mentioned herein-above, we set aside the impugned orders dated 27.08.2015 in R.A.(S.A) 16 of 2015 and R.A.(S.A)15 of 2015 respectively. It is directed that the stay order passed on 5th March, 2015 by the appellate tribunal shall be maintained. The matter is remitted back to the appellate tribunal to consider the case on merit expeditiously.

7. Resultantly, both writ petitions are allowed. No costs. Consequently, connected miscellaneous petitions are closed.



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