TRIBUNAL, ERNAKULAM v. BANK OF BARODA

of a Firm by name "Manasi Initiatives" and also "Mansard Interlink", which is doing business of manufacturing eco friendly footwear. The aforementioned Partnership Firms are sister concerns of "Classic Foot Care (India) Private Limited".

2. The respondent-Bank sanctioned demand loan facilities and Cash Credit facilities to the Partnership Firms and the Company. Seven items of immovable properties were created as security interest including the residential property of the OP(DRT)No.51 of 2023 :3: petitioner having an extent of 13.125 cents in Re-survey No.132/12 of Kuruvanthuruthy Village in Kozhikode Taluk. The accounts were declared as NPA and Ext.P2 notice dated

22.01.2018 was issued under Section 13(2) of the SARFAESI Act.

3. The petitioner and the other borrowers approached this Court and Exts.P3 to P5 are the judgments passed by this Court. By Exts.P3 to P5 judgments, this Court directed the respondent to regularise the loan accounts. Since the petitioner could not honour the undertaking. The respondent-Bank filed a review petition and Ext.P6 is the judgment passed by this Court. While so, the respondent-Bank instituted three Original Applications before the Debts Recovery Tribunal as O.A. Nos.616, 617 and 618 of 2018.

4. In the meantime, the respondent-Bank approached the Chief Judicial Magistrate's Court, Kozhikode under Section 14 of the SARFAESI Act to take physical possession of the secured OP(DRT)No.51 of 2023 :4: assets. Pending the said application, the petitioner and the borrowers voluntarily surrendered all the six items of property except the residential property which belonged to the petitioner, on 16.07.2019. In order to avert the proceedings against the residential property, a sum of ₹50 Lakhs was also deposited. Consequently, the Chief Judicial Magistrate Court, Kozhikode closed M.C. No.122 of 2019 without prejudice to the right of the respondent-Bank to reopen the proceedings.

5. In the meantime, the respondent-Bank during the period of Covid-19 pandemic, instituted M.C. No.192/2020 before the Chief Judicial Magistrate's Court, Kozhikode. On 29.07.2020, the Chief Judicial Magistrate appointed an Advocate Commissioner to take physical possession of the residential property of the petitioner by Ext.P8 order. The Advocate Commissioner issued notice for taking possession and at that juncture, the petitioner approached this Court by filing W.P.(C) No.26109 of 2020. OP(DRT)No.51 of 2023 :5:

6. By Ext.P9 judgment, this Court relegated the petitioner to avail the statutory remedy under Section 17 of the SARFAESI Act and to enable the petitioner to avail the statutory remedy, the proceedings were kept in abeyance for a period of two weeks. It is thereafter the petitioner filed Ext.P1 Securitisation Application before the Debts Recovery Tribunal, Ernakulam.

7. During the pendency of the securitisation application, settlements talks were held between borrowers and the Bank. Pursuant to the settlement talks, Ext.P11, OTS proposal was submitted on 01.09.2022 and as a condition for releasing the residential property, a further sum of ₹35 lakhs was also remitted by the borrower. Without giving any reply to the OTS proposal and in total disregard to the understanding entered into between the parties, the respondent-Bank again approached the Chief Judicial Magistrate and the Advocate Commissioner has issued Ext.P13 notice and informed that the physical possession of the property will be taken on 19.01.2023. OP(DRT)No.51 of 2023 :6:

8. The petitioner filed application to amend the Securitisation Application and to stay all further proceedings in C.M.P. No.1383 of 2022 in M.C. No.199 of 2020. By Ext.P18 order, the Debts Recovery Tribunal dismissed the application for stay. It is aggrieved by Ext.P18 order that this OP(DRT) is filed by the petitioner.

9. The petitioner seeks the following reliefs:- “i) Set aside Ext.P18 order and allow Ext.P16 application (I.A.No.157 of 2023 in S.A.No.199 of 2020 on the file of the Debts Recovery Tribunal-I, Ernakulam) as prayed for. ii) Dispense with filing of the translation of vernacular documents. iii) shall deem just.” Grant such other reliefs as this Hon'ble Court

10. I have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the respondents.

11. Standing Counsel vehemently opposed grant of any prayers in the OP(DRT). I find that when the OP(DRT) came up for admission, this Court passed an interim order on 07.02.2023, OP(DRT)No.51 of 2023 :7: ordering that dispossession of the petitioner shall be kept in abeyance for a period of one week. The said interim order was extended from time to time.

12. Taking into consideration the facts of the case, I find that since S.A is already pending before the Debts Recovery Tribunal, a final resolution of the dispute can be arrived at once the S.A is decided. It is submitted by the Counsel on either side that the S.A stands posted to 25.01.2023. In the facts of the case, the OP(DRT) is disposed of directing the Debts Recovery Tribunal-I, Ernakulam to hear and finally dispose of the S.A within a period of one month from

25.01.2024. The benefit of the interim order passed by this Court will continue to enure to the benefit of the petitioner till then. JUDGE N. NAGARESH Sd/- OP(DRT)No.51 of 2023 :8: APPENDIX OF OP (DRT) 51/2023 PETITIONER EXHIBITS EXHIBIT P 1 EXHIBIT P 2 EXHIBIT P 3 EXHIBIT P 4 EXHIBIT P 5 EXHIBIT P 6 EXHIBIT P 7 EXHIBIT P 8 EXHIBIT P 9 TRUE COPY OF SECURITISATION APPLICATION DATED 05/12/2020 (S.A. NO. 199 OF 2020) WITHOUT ANNEXURES ON THE FILE OF THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF NOTICE NO. RAMCAL. ADV/2017-18/13 AND DATED 22/01/2018 ISSUED BY THE SECOND RESPONDENT. TRUE COPY OF JUDGMENT DATED 06/07/2018 IN WRIT PETITION (CIVIL) NO. 21080 OF 2018 PASSED BY THIS HONOURABLE COURT. TRUE COPY OF JUDGMENT DATED 06/07/2018 IN WRIT PETITION (CIVIL) NO. 21039 OF 2018 PASSED BY THIS HONOURABLE COURT. TRUE COPY OF THE JUDGMENT DATED 06/07/2018 IN WRIT PETITION (CIVIL) NO. 21037 OF 2018 PASSED BY THIS HONOURABLE COURT. TRUE COPY OF ORDER DATED 23/11/2018 IN R.P. NO. 798 OF 2018 IN WRIT PETITION (CIVIL) NO. 21080 OF 2018 PASSED BY THIS HONOURABLE COURT. TRUE COPY OF AFFIDAVIT FILED BY THE AUTHORISED OFFICER OF THE RESPONDENT BANK IN M.C. NO. 192/2020 ON THE FILE OF THE CHIEF JUDICIAL MAGISTRATE COURT, KOZHIKODE. TRUE COPY OF ORDER DATED 29/07/2020 IN M.C. NO. 192 OF 2020 PASSED BY THE CHIEF JUDICIAL MAGISTRATE COURT, KOZHIKODE. TRUE COPY OF JUDGMENT DATED 26/11/2020 IN WRIT PETITION (CIVIL) NO. 26109 OF 2020 PASSED BY THIS HONOURABLE COURT. OP(DRT)No.51 of 2023 :9: EXHIBIT P 10 EXHIBIT P 11 EXHIBIT P 12 EXHIBIT P 13 EXHIBIT P 14 EXHIBIT P 15 EXHIBIT P 16 EXHIBIT P 17 EXHIBIT P 18 TRUE COPY OF WRITTEN STATEMENT FILED BY THE RESPONDENT BANK IN S.A. NO. 199 OF 2020 ON THE FILE OF THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM. TRUE COPY OF LETTER DATED 01.09.2022 SUBMITTED BY SIVADASAN CHEMMANATTIL TO THE REGIONAL MANAGER, BANK OF BARODA TRUE COPY OF ACCOUNT STATEMENT ISSUED BY FEROKE CO-OPERATIVE URBAN BANK LIMITED. TRUE COPY OF NOTICE DATED 04.01.2023 ISSUED BY NIDHIN DAS. K., ADVOCATE COMMISSIONER APPOINTED BY CHIEF JUDICIAL MAGISTRATE'S COURT, KOZHIKODE IN CMP NO. 1383/2022 IN M.C. NO. 192/2020. TRUE COPY OF I.A. NO. 155 OF 2023 DATED 16.1.2023 FILED BY THE PETITIONER HEREIN IN S.A. NO. 199/2020 ON THE FILE OF THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF IA NO. 156 OF 2023 DATED 16.1.2023 FILED BY THE PETITIONER IN SA NO. 199 OF 2020 ON THE FILE OF THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM WITHOUT ANNEXURES TRUE COPY OF IA NO. 157 OF 2023 DATED 16.1.2023 FILED BY THE PETITIONER HEREIN IN SA NO. 199 OF 2020 ON THE FILE OF THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF COUNTER AFFIDAVIT DATED 18/01/2023 IN IA NO. 157 OF 2023 IN S.A. NO. 199/2020 ON THE FILE OF THE DEBT RECOVERY TRIBUNAL-I, ERNAKULAM FILED BY THE RESPONDENT BANK. TRUE COPY OF ORDER DATED 23/01/2023 IN IA NO. 157 OF 2023 IN SA NO. 199 OF 2020 PASSED BY DEBT RECOVERY TRIBUNAL-I, ERNAKULAM. OP(DRT)No.51 of 2023 :10: EXHIBIT P 19 EXHIBIT P 20 EXHIBIT P 21 EXHIBIT P 22 EXHIBIT P 23 EXHIBIT P 24 TRUE COPY OF THE REPORT ON VALUATION OF PROPERTY DATED 25.3.2021 IN RESPECT OF 4.75 CENTS OF LAND IN THE RE SY NO 148/2 OF FEROKE VILLAGE COVERED BY DOC NO 4932/1993 OF FEROKE SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS TRUE COPY OF THE REPORT DATED 25.03.2021 ON VALUATION OF PROPERTY ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS. TRUE COPY OF THE REPORT DATED 25.3.2021 ON VALUATION OF PROPERTY HAVING AN EXTENT OF 41.59 CENTS IN THE R. SY NO 151/1.3 OF FEROKE VILLAGE COVERED BY DOC NO 3588/2010 OF FEROKE SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS TRUE COPY OF THE REPORT DATED 25.3.2021 ON VALUATION OF PROPERTY HAVING AN EXTENT OF 69.75 CENTS IN RE SY NO 39/6.7A OF AR NAGAR VILLAGE COVERED BY DOC NO 888/2003 OF TIRURANGADY SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS TRUE COPY OF THE REPORT DATED 25.3.2021 ON VALUATION OF PROPERTY HAVING AN EXTENT OF 16.5 CENTS IN RE SY NO 151/1.3 OF FEROKE VILLAGE COVERED BY DOC NO 2984/2002 OF FEROKE SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS TRUE COPY OF THE REPORT DATED 6.4.2017 ON VALUATION OF PROPERTY HAVING AN EXTENT OF 7 CENTS IN RE SY NO 151/3 OF FEROKE VILLAGE COVERED BY DOC NO 3397/1990 OF FEROKE SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS OP(DRT)No.51 of 2023 :11: EXHIBIT P 25 TRUE COPY OF THE REPORT DATED 6.4.2017 ON VALUATION OF PROPERTY HAVING AN EXTENT OF 9.65 CENTS IN RE SY NO 151/3 OF FEROKE VILLAGE COVERED BY DOC NO 2796/1992 OF FEROKE SRO, ISSUED BY THE ASSOCIATED ENGINEERS AND VALUERS, APPROVED PROPERTY VALUERS