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Judgment
Akil Kureshi, CJ
This petition is filed by the legal heirs of the original borrower who had defaulted in making repayment of the loan obtained from the respondent-Bank. He unfortunately expired in a vehicular accident. The Bank had instituted proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for recovery through sale of their secured asset in terms of Section 13(4) of the Act. The petitioners had first approached the Debts Recovery Tribunal (DRT) challenging such proceedings on several grounds including non-service of notice under Section 13(2) of the Act. Such petition was dismissed by the DRT against which we are informed that appeal before the DRT is also filed and is pending. However, in the meantime since the Bank was proceeding with the auction sale of the secured asset and on the ground that the Bench of DRT was not immediately available for hearing, this petition was filed for interim protection. On 27.09.2019, this Court had passed an order requiring the petitioners to deposit a sum of `5,00,000 (rupees five lakhs) within one week subject to which the Bank was prevented from taking coercive action and to make them status quo with respect to the property in question. We are informed that such amount has been deposited.
Learned counsel for the Bank, however, submitted that before the said order was passed, the Bank had proceeded further in terms of the provisions contained in the said Act and put the secured asset to auction sale. The offer of the highest bidder has been accepted.
In view of such developments, we do not propose to pass any further order in this petition, but leave it to the petitioners to pursue its remedies in the pending appeal before the DRT.
Learned counsel for the petitioners submitted that despite the auction, the petitioners' grounds for challenge to the action taken by the Bank under Section 13 of the Act would not be rendered infructuous. We are sure that DRT would consider such contention also.
This petition is, therefore, disposed of leaving it to the parties to raise all contentions in the pending appeal before the DRT. However, the order of status quo granted by this Court shall continue for a period of 2(two) months from today. It would be thereafter for the petitioners to seek appropriate orders from the DRT including interim orders if so desired, in the said pending appeal. Continuation of the order of status quo is not an indication from us of the merits or demerits of any other contentions of the petitioners or the respondents.
Petition is disposed of accordingly.
Pending application(s), if any, also stands disposed of.