Dr. Rajeshwari vs M/s. PNB Housing Finance Limited

This appeal is filed challenging the order passed in IA 2656/2023 in SA (NDN) 1204/2023.

Appellant filed the aforesaid SA challenging the order passed by learned Chief Judicial Magistrate, Tiruppur in the petition filed under Section 14 of the SARFAESI Act 2002 along with an application for condonation of delay of 41 days in filing the application. When delay condonation application was taken up for hearing, it appears that appellant has offered to pay a sum of Rs.20.00 lakhs to the respondent within two weeks from the date of hearing on 7.8.2023. Learned Counsel for respondent initially objected to condone the delay on the ground that appellant approached the Hon’ble High Court of Madras to condone the delay caused in this case wherein Hon’ble High Court imposed a condition to deposit Rs.20.00 lakhs with the respondent bank. Appellant failed to do so and approached this Tribunal. It is further submitted that substantial sum of Rs.52,52,405.46p was due as on 4.8.023, which remained to be recovered. Despite that, since appellant voluntarily came forward to pay substantial sum of Rs.20.00 lakhs to the bank, respondent bank had no objection in allowing the delay condonation petition. Learned Presiding Officer after considering the rival submissions, allowed the delay condonation petition subject to payment of Rs.20.00 lakhs to the bank and directed the Registry to number the SA(NDN) 204/2023 subject to production of proof of payment of Rs.20.00 lakhs as ordered by the Tribunal. Challenging this order, this appeal is filed.

Learned counsel for the appellant submitted that the appellant filed WP 28697/2024 before the Hon’ble High Court of Madras under Article 226 of the Constitution of India against the respondent-Bank for issuance of Writ of Mandamus directing the respondent-Bank not to execute the order passed in Crl.M.P.No.3652/2023. The Hon’ble High Court of Madras, vide its order dated 03.10.2024, directed the petitioner to pay a sum of Rs.10,00,000/- to the respondent-Bank. In compliance of this order, a sum of Rs.10,00,000/- was paid. Now, possession is scheduled to be taken tomorrow. In the said circumstances, he seeks protection.

Learned counsel for the respondent-Bank submitted that as per the demand notice dated 08.04.2021, the amount due was Rs.45,22,789.25p. and as per the application filed under Section 14 of the SARFAESI Act, the amount due was Rs.52,52,405.46p. as on 04.08.2023, but, current due is much more than Rs.52,52,405.46p. Appellant is deliberately protracting the proceedings by approaching the Hon’ble High Court of Madras and then Debt Recovery Tribunal with delay and again allowing this appeal to be dismissed for non-prosecution.

Considered the rival submissions and perused the records.

This appeal is filed against the interim order passed by the DRT, Coimbatore on 07.08.2023 in the condone delay application (IA 2656/2023) in SA (NDN) 1204/2023 and the said SA is still pending. In the said circumstances, this appeal can be disposed by directing the petitioner to pay a sum of Rs.20,00,000/- as ordered by the learned Presiding Officer, DRT, Coimbatore in the impugned order within a period of two weeks from today. Till then, the possession scheduled to be taken tomorrow is deferred. On such payment, the learned Presiding Officer, DRT, Coimbatore is directed to number the securitization application, if it is otherwise in order and dispose of the same in the manner known to law as expeditiously as possible. In case of default in paying the amount, Bank is at liberty to proceed further in accordance with law. Accordingly, this appeal is disposed. Parties are directed to bear their own costs. Pending IAs, if any, shall stand closed.

Learned counsel for the respondent-Bank is directed to inform the Bank not to proceed with possession scheduled to be taken tomorrow.