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HIGH COURT OF JUDICATURE AT MADRAS
Navashila Ago Pvt Ltd – Appellant
Versus
The Debts Recovery Appellate Tribunal – Respondent
WP 2881/2019
['M/s A S Kailasam', 'R TRIBUNAL', '', 'M/S K S SUNDAR', 'M/S RRK ASSOCIATES', 'A RAKESH', 'VAKALAT NOT FILED']
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Reserved on : 05.02.2020
Pronounced on 20.02.2020
CORAM:
THE HON'BLE MR. JUSTICE M.SATHYANARAYANAN
AND
THE HON'BLE MRS. JUSTICE R.HEMALATHA
WP.No.2881/2019 & WMP.No.3138/2019
M/s.Navashila Agro Private Limited
809, Parekh Market,
29, JSS Road, Near Kennedy Bridge
Opera House, Mumbai 400 008.
rep.by its Director
..
Petitioner
vs.
1.The Debts Recovery Appellate Tribunal
4th Floor – Indian Bank Circle Office
No.55, Ethiraj Salai, Egmore,
Chennai 600 008.
2,Priya Tea Industries
rep.by its Managing Partner
A.Chandran [Decd], Robroy Estate
Konavakorai Road, Kothagiri 643 217.
3.Mrs.Kali Chandran
Partner, Priya Tea Industries,
Robroy Estate, Konaakorai Road
Kothagiri 643 217.
4.Indian Bank
rep.by its Authorised Officer
359, Dr.Nanjappa Road
Coimbatore 641 018.
5.Indian Bank,
rep.by its Manager,
Conoor Branch
The Nilgiris.
..
Respondents
1
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Prayer: Writ petition filed under Article 226 of the
Constitution of India praying for issuance of a writ of
certiorari calling for the records of the 1st respondent which
culminated in the impugned order dated 03.10.2018 in RA [SA]
No.163/2017 insofar as the direction in paragraph 13 of the
order is concerned and to quash the same.
For Petitioner :
Mr.A.K.Sriram
For RR2&3
:
Mr.K.S.Sundar
For RR4&5
:
Mr.R.Ramesh for RRK Associates
R1
:
Tribunal
O R D E R
M.SATHYANARAYANAN, J.
(1)The 3rd respondent in RA[SA] No.163 of 2017 on the file of the
Debts Recovery Appellate Tribunal, at Chennai / the 1st
respondent herein, is the writ petitioner herein. The
petitioner / auction purchaser, aggrieved by the disposal of
the said appeal with certain directions, vide impugned order
dated 03.10.2018 passed by the 1st respondent herein, had filed
the present writ petition.
(2)The 2nd respondent herein, viz., Priya Tea Industries, had
availed financial assistance/credit facilities in the form of
OCC Limit for a sum of Rs.25 Lakhs, Additional Medium Term
Loan-I for a sum of Rs.21 Lakhs and the Additional Medium Term
Loan-II for a sum of Rs.14 Lakhs, in all, aggregating to a sum
of Rs.60 Lakhs from the 5th respondent / Bank.
(3)The Managing Partner of the 2nd
respondent, viz.,
Mr.A.Chandran, had created equitable mortgage in respect of the
land and building admeasuring to an extent of 2 Acres situate
at RS.No.1310, 1379/1 to 3 [Part] of Kothagiri Village,
Nilgiris District and also the land admeasuring to an extent of
6 cents along with the superstructure, bearing No.27/94A,
Kothagiri Village, Nilgiris District.
(4)According to the 5th respondent / Bank, the 2nd respondent
herein had committed default in repayment of the dues and
therefore, the Account has been classified as ''Non Performing
Assets'' [NPA] on 30.09.2005. The 5th respondent / Bank had
initiated proceedings under the Securitisation And
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 [in short ''SARFAESI Act''] by issuing a
Demand Notice under Section 13[2] of the SARFAESI Act on
28.10.2005 and the respondents 2 and 3 herein had failed to
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comply with the terms of the said Notice and therefore, the 4th
respondent / Bank had issued Possession Notice under Section 13
[4] of the SARFAESI Act on 05.05.2006 and the symbolic
possession of the secured assets was also taken.
(5)The 2nd
respondent herein filed WP.No.16355 of 2006
challenging the Possession Notice dated 05.05.2006 and it was
entertained and initially an interim order was granted. The
said writ petition was dismissed subsequently and the 4th
respondent / Bank had taken physical possession of the secured
assets on 26.10.2007. The secured assets were brought for sale
on 27.12.2007 and it was preceded by a Sale Notice dated
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