M/s Oberai Motor Sales & others vs District Magistrate, District – Dehradun & others

SUDHANSHU DHULIA, J. (ORAL)

The petitioners had admittedly taken a loan from the respondent Bank, which they could not repay. Consequently, the account of the petitioners was

declared as “Non Performing Assets†(in short “NPAâ€) and later the bank proceeded under the provisions of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (from hereinafter referred to as the “Actâ€) for recovery of its

loan amount. As of now, not only the symbolic possession has been taken by the bank but on requisition being made by the bank to the concerned

District Magistrate, orders for possession have already been passed.

Petitioners not only filed the writ petition primarily aggrieved by the proceedings initiated against them under the Act but also by an order passed by

the District Magistrate under Section 14 of the Act.

This Court has been informed that the petitioners had approached the Debts Recovery Tribunal at Lucknow against the notice of symbolic

possession and thereafter the matter stands transferred to the Debts Recovery Tribunal at Dehradun. In this case the Debts Recovery Tribunal

refused to hear the application of the petitioners earlier which was against symbolic possession taken by the Bank on the ground that as of now the

symbolic possession has not been taken by the bank and it does give any cause of action to the petitioners to move an application before the Debts

Recovery Tribunal. Reliance was placed by the Debts Recovery Tribunal to a full bench decision of the Allahabad High Court in the case of M/s

N.C.M.L. Industries Ltd. and another Vs. Debts Recovery Tribunal, Lucknow and others, decided on 06.02.2018.

As of now, however, the situation as it stands is that not only the symbolic possession has been taken but actual possession of the property has also

been taken by the bank.

In view of the above, the restriction as given by the full bench of Allahabad High Court in the aforesaid case would not be applicable in the present

case.

The petitioners would be at liberty to approach the Debts Recovery Tribunal in accordance with law. In case it is done, the appeal of the petitioners

shall be heard in accordance with law as expeditiously as possible.

The writ petition stands disposed.

Let a certified copy of this order be supplied today itself of payment of usual charges.