The main legal point established in the judgment is the court's discretion to dispose of the writ petition, allowing the parties to present their case before the DRAT, and clarifying the continuation of interim protection granted by the court.

JUDGMENT

Avneesh Jhingan, J. - This writ petition has been filed seeking quashing of order dated 20.07.2018 (Annexure P-19) passed by the Debt Recovery Appellate Tribunal, Delhi (for short, 'DRAT') in a Misc. Appeal No.446 of 2017 arising out of OA No.1955 of 2017.

2. Petitioner No.1 is a Private Limited Company. Petitioners No.2 and 3 are the Directors of the Company. Union of India; Debts Recovery Appellate Tribunal, New Delhi and HDFC Bank, Mumbai have been arrayed as respondents No.1 to 3 respectively in the writ petition.

3. Petitioner No.1 is having dealership of Toyota Vehicles for Ludhiana, Moga and Ferozepur. Petitioner No.1 took loan from various banks for working capital limits. A limit of Rs. 20 crores was sanctioned on 27.09.2014 by respondent No.3. The said limit was reduced by the respondent-bank with the passage of time. Petitioner No.1 defaulted in repayment and the account was classified as non performing asset (NPA) on 16.10.2015. Respondent-bank issued a show cause notice dated 12.08.2016 to the petitioners as to why they may not be declared as willful defaulters. Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (for short, 'the Act') was issued on 29.04.2017. As per notice there was an outstanding amount of Rs. 24,06,09,615/- as on 31.03.2017.

4. The respondent No.3 filed OA No.2422 of 2015 along with list of properties and prayed for interim relief restraining the petitioners to create third party interest. The matter was transferred to DRT-III from DRTII and the OA was renumbered as 1955 of 2017. Interim orders were passed on 11.02.2016 and 19.05.2016. Thereafter, respondent No.3 filed an application for issuing directions to the Bureau of Immigration (Ministry of External Affairs) not to allow petitioners No.2 and 3 to leave the country without prior permission of the Tribunal. The said application was dismissed on 16.09.2017. Aggrieved of the order, respondent No.3 filed the appeal before the DRAT. Notice was issued in appeal. During the pendency of the appeal, petitioner No.2 filed an application for permission to leave India to attend meeting in South Africa. It is alleged that the Tribunal granted permission to petitioner No.2 to go abroad. Thereafter, respondent No.3 filed applications for initiation of contempt proceedings against the defendants/petitioner No.2. On the applications filed, DRAT passed an order dated 20.03.2018. The operative part of the order is reproduced below:-

"In the meanwhile, appellant bank can also give its response in respect of the permission granted to Mr.Chadha by the DRT. Counsel for the petitioner has today submitted that respondents owe to the bank over Rs. 17 crores which is huge amount of public money. On the next date, the respondents shall file an affidavit before this Tribunal regarding all their assets, immovable and moveable including bank accounts, and give details of properties which my be there in the names of their immediate family members as also of Companies, if any, in which Mr. Chadha himself has any share/interest. The respondents are also given a show cause notice to show as to why appropriate orders, as contemplated under Section 19(18)&(25) of the RDDBFI Act, 1993 be not passed including that of appointment of receiver for taking over possession of their immovable assets, encumbered or unencumberd."

5. The petitioner challenged the order dated 20.03.2018 in CWP No.10833 of 2018. Another prayer was made in the writ petition that respondents be restrained from appointing any receiver or taking physical possession of the property till the revival proposal is put before the committee constituted under notification dated 17.03.2016. The writ petition was disposed of vide order dated 02.05.2018. The order of the writ petition is reproduced below:-

"The recovery proceedings are pending before the Debts Recovery Tribunal-III, Chandigarh against the petitioner-borrowers.