The DRT has the discretion to prepone the date for consideration of a stay application under the SARFESI Act if there is extreme urgency.

Court No. - 21

Case :- WRIT - C No. - 39911 of 2022

Petitioner :- M/S Aar Kay Tex And 2 Others

Respondent :- Uco Bank And 4 Others

Counsel for Petitioner :- Udai Chandani

Counsel for Respondent :- CSC,Ajay Shankar

Hon'ble Manoj Kumar Gupta,J.

Hon'ble Vikram D. Chauhan,J.

The petitioners have called in question an order dated 9.12.2022

passed by respondent no.5 under Section 14 of the

Securitization and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 (SARFESI Act) and

for restraining the respondent-Bank from taking any coercive

measure in pursuance of the said order.

The petitioners are borrower and having defaulted in payment

of loan taken from respondent no.1, the proceedings under the

SARFESI Act are in progress.

The petitioners have challenged the proceedings by filing

Securitization Application No.296 of 2020 before the Debts

Recovery Tribunal, Allahabad. As impugned order under

Section 14 of SARFESI Act was passed during pendency of the

securitization application, the petitioners applied for stay before

DRT, Allahabad. The petitioners also filed an application for

preponing the date of hearing. The application filed by them for

preponing the hearing was allowed but surprisingly in the last

part of the order it is noted that the matter be put up on the date

already fixed i.e. 24.3.2023.

Learned counsel for the petitioners submit that there is extreme

urgency in the matter and in case, the order passed under

Section 14 of SARFESI Act is implemented, the very purpose

of filing stay application will stand defeated.

Learned counsel for the respondent-Bank is not in a position to

dispute the same. He also does not have any objection in case a

direction is issued to the DRT, Allahabad to prepone the date for

consideration of the stay application.

Accordingly, with the consent of counsel for the parties, the

petition is disposed of with direction to the DRT, Allahabad to

prepone the date of hearing of the stay application and dispose

of the same within 15 days from the date of receipt of true

attested copy of the instant order.

The parties have agreed that they will appear before the DRT,

Allahabad on 16.1.2023, so that a date is fixed within 15 days

by DRT, Allahabad for consideration and disposal of the stay

application.

Order Date :- 11.1.2023

Bhaskar

(Vikram D. Chauhan, J.) (Manoj Kumar Gupta, J.)

Digitally signed by :-

BHASKAR

High Court of Judicature at Allahabad