2024 Supreme(Online)(Kar) 38877
KARNATAKA HIGH COURT
MR JUSTICE S.R.KRISHNA KUMAR, J
SRI. RAGHAVENDRA – Appellant
Versus
THE AUTHORISED OFFICER /MANAGER – Respondent
WP 19124 / 2024
SRI. SANDHYA U PRABHU., SRI. ESHWAR N.KOTI.
The court can modify DRT orders to ensure justice when a party presents bona fide reasons for non-compliance.
Headnote:
[Writ] - [Banking and Debt Recovery] - [SARFAESI Act, Section 14] - [The court modified a prior order of the DRT, allowing the petitioner additional time to pay a specified amount to the bank, emphasizing the need for a justice-oriented approach in light of the petitioner's bona fide reasons for non-compliance.]
Fact of the Case:
The petitioner sought to quash a notice from the bank and requested mandamus for cheque acceptance, citing inability to comply with DRT's payment order due to bona fide reasons.
Finding of the Court:
The court acknowledged the petitioner's genuine reasons for non-compliance and modified the DRT's order, allowing a new payment deadline to facilitate justice.
Issues: Whether the petitioner should be granted additional time to comply with the DRT's payment order under the SARFAESI Act.
Ratio Decidendi: The court emphasized a justice-oriented approach, allowing modification of the DRT's order based on the petitioner's bona fide circumstances.
Final Decision: The petition was disposed of, modifying the DRT's order to require payment by a new deadline.
In this petition, petitioner seeks the following relief's:
- "Wherefore, the Petitioner humbly prays that this Hon'ble Court may be pleased to;
- a) Issue a writ of certiorari quashing the Notice dated Bearing No. CBI/2024-25 dated 01/07/2024 issued by the respondent bank in respect of schedule property produced at Annexure-D.
- b) Issue a writ of mandamus directing the respondent bank to accept the Cheque bearing No.109831 drawn on SVC Co-operative Bank Ltd, Yeshwanthpur Branch, Bangalore dated 27/07/2024 issued by the petitioner produced at Annexure-D.
- c) Issue a writ of mandamus directing the respondent bank to accept the Cheque bearing No.109832 drawn on SVC Co-operative Bank Ltd, Yeshwanthpur Branch, Bangalore dated 27/07/2024 issued by the petitioner produced at Annexure-E.
- d) Grant any other relief as this Hon'ble court deems fit in the facts and circumstances of the case including awarding costs, in the interest of justice and equity."
2. Heard learned counsel for the respective parties.
3. The learned counsel for the petitioner, invite my attention to the material on record in order to point out that in S.A.No.253/2024 filed by the petitioner before the Debts Recovery Tribunal I (in short 'DRT') Bangalore, the petitioner filed an application I.A.No.1068/2024 in S.A.No.253/2024 seeking stay and the same was allowed by the DRT vide order dated 27.05.2024 as here under:
- "4 (a) the operation of the impugned order dated 26.03.2024 passed by the CJM, Bengaluru in Crl.
- Misc. No.465/2024 under Section 14 of SARFAESI Act is hereby stayed subject to the condition that the Petitioners/Appellants shall pay an amount Rs.9,84,640/-, within eight weeks in two equal installments. The Petitioners/Appellants shall pay the first instalment of Rs.4,92,320/- on or before 27.06.2024 and the second installment of Rs.4,92,320/- shall be payable on or before 27.07.2024 into the loan account with the secured creditor/Respondent.
- (b) If the Petitioners/Appellants fail to comply with payment of the above installments under 4(a) or any of the above conditions, this order would stand automatically vacated; in which event, the Respondents is at liberty to proceed further in accordance with law; and (c) On the next date of hearing the Petitioners/Appellants shall file before this Tribunal, the proof of having made such payments as mentioned in clause 4(a) above.
5. Call this case on 29.07.2024 for reporting compliance of the above conditions/objections."
4. It is submitted that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not pay the aforesaid amounts as directed by DRT, Bangalore, in the aforesaid order and if some more time is granted, the petitioner would make such payment without seeking any extension under any circumstances whatsoever.
5. Per contra, learned counsel for the respondent/bank would submit that there is no merit in the petitioner and the same is liable to be dismissed.
6. Though, the request of the petitioner for extension of time to comply with the directions issued by the DRT in the aforesaid order is vehemently opposed by the learned counsel for the respondent/bank, in the light of the specific assertion on the part of the petitioner that his inability and omission to comply with the aforesaid directions of DRT and make payment was due to bonafide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented approach, I deem it just and proper to dispose of this petition by directing the petitioner to pay a sum of Rs.10,00,000/- (Rupees ten lakhs only) to the respondent/bank on or before 17.08.2024, by modifying the order dated 27.05.2024 passed by the DRT.
7. In the result, I pass the following:
- ORDERi. Petition is here by disposed of .
- ii. Order dated 27.05.2024 passed on I.A.No.1068/2024 in S.A.No.253/2024 by the DRT-I, Bangalore is hereby modified.
- iii. I.A.No.1068/2024 is disposed of by directing the petitioner to pay a sum of Rs.10,00,000/- (Rupees ten lakhs) to th