W.P.(C) 2550/2020

Page 1 of 26

IN THE HIGH COURT OF DELHI AT NEW DELHI

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Judgment delivered on: 01.11.2023

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W.P.(C) 2550/2020 and CM APPL. 8896/2020

IDFC FIRST BANK LIMITED

..... Petitioner

versus

UNION OF INDIA AND ORS.

..... Respondents

Advocates who appeared in this case:

For the Petitioner

: Mr Sanjeev Singh and Ms Ridhi Pahuja,

Advocates.

For the Respondents

: Mr Vivek Goyal, SPG and Mr Mimansak

Bhardwaj, GP, Mr Gokul Sharma, Mr Shivam

Singh and Ms Aneeta Goyal, Advocates for

R-1 & 2.

CORAM

HON’BLE MR JUSTICE VIBHU BAKHRU

HON’BLE MR JUSTICE AMIT MAHAJAN

JUDGMENT

VIBHU BAKHRU, J

1.

The petitioner has filed the present petition impugning an order

dated 20.06.2019 (hereafter ‘the impugned order’) passed by the

learned Debts Recovery Tribunal III, Delhi whereby, the petitioner’s

application under Section 13(10) of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security

Interest Act, 2002 (hereafter ‘the SARFAESI Act’) read with Rule 11

Digitally Signed

By:DUSHYANT

RAWAL

Signing Date:01.11.2023

Signature Not Verified

W.P.(C) 2550/2020

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of the Security Interest (Enforcement) Rules, 2002 (hereafter ‘the SIE

Rules’) for the recovery of balance amount of ₹6,92,551.63 along with

interest, was rejected on the ground that the same was less than

₹10,00,000 and was therefore, not within the pecuniary jurisdiction of

the learned Debts Recovery Tribunal - III.

2.

The principal question to be addressed is whether the Debts

Recovery Tribunal has the jurisdiction to entertain a claim for less than

₹10,00,000/- under Section 13(10) of the SARFAESI Act.

Facts in Brief

3.

The petitioner entered into a Loan Agreement on 30.12.2015

bearing Loan Account No. 4938084 for an amount of ₹23,00,000 with

respondent no.1 and 2. Thereafter, respondent no.1 and 2 created

security interest in respect of the built up property captioned 1/16953,

First Floor, Khasra No. 270, Village Skidarpur, Abadu Babarpur Road,

Shivaji Park, ILAQA, Shahadra, Delhi (hereafter ‘the Property’) to

secure the Loan and accordingly, deposited original title deeds for the

same to the petitioner.

4.

It is the case of the petitioner that respondent no.1 and 2 were

unable to comply with their repayment obligations and therefore, the

loan amount was classified as Non-Performing Asset (NPA).

5.

Admittedly, on 27.06.2017, the petitioner issued a demand notice

to respondent no.1 and 2 calling upon them to discharge their liability

Digitally Signed

By:DUSHYANT

RAWAL

Signing Date:01.11.2023

Signature Not Verified

W.P.(C) 2550/2020

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of ₹24,71,141.85 along with interest and other charges within a period

of 60 days from the said date.

6.

Subsequently, the petitioner filed an application under Section 14

of the SARFAESI Act as a secured creditor, before the learned District

Court, Karkardooma, Delhi. On 09.02.2018, the learned District Court

appointed one Sh. Praveen Kumar Chauhan as a receiver to take the

possession of the Property on behalf of the petitioner.

7.

Thereafter, the petitioner sold the Property for an amount of

₹21,38,000/- and issued asale certificate dated 15.09.2018 to the

successful purchaser.

8.

It is submitted on behalf of the petitioner that after adjusting the

sale proceeds recovered from the loan amount, an amount of

₹6,92,551.63 remained outstanding. Therefore, the petitioner filed an

application under Section 13(10) of the SARFAESI Act read with Rule

11 of the Rules titled IDFC First Bank Ltd. v. Deepak Yadav and Anr.

in O.A. Dy. No. 406/2019, before the learned Debts Recovery Tribunal

- III.

9.

The Registrar, Debts Recovery Tribunal-III dismissed the

petitioner’s application, by the impugned order.

Submissions on behalf of the parties

10.

It is submitted on behalf of the petitioner that the pecuniary li