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Judgment
In all these writ petitions, the Petitioners are purchasers from builders, who had borrowed loans from the Opposite Parties-Orissa Rural Housing and Development Corporation Ltd. (ORHDC) for construction of flats. The ground on which the ORHDC has issued notices to these Petitioners under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) is that the purchases were made without prior permission of the ORHDC in whose favour the flats were mortgaged for repayment of the loans.
While issuing notice in these petitions, this Court had passed interim orders of stay or status quo. As a result, proceedings have not been able to progress pursuant to the notices under the SARFAESI Act.
In the circumstances, the Court sees no reason why the statutory processes should not be taken to its logical end and, therefore directs as under:
i. The interim orders are modified by permitting the ORHDC to proceed further in terms of the notices under the SARFAESI Act by instituting appropriate proceedings before the Debt Recovery Tribunal (DRT);
ii. Till such time the DRT passes an appropriate order on applications for interim relief to be filed by either party, no coercive steps shall be taken against the Petitioners;
iii. The Court clarifies that it has not expressed any view on merits and it will be open to parties to advance all their submissions before the DRT in accordance with law;
The writ petitions are disposed of in the above terms. Issue urgent certified copy of this order as per rules.
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