M/S. Goldspin Industries Ltd v. Authorized Officer, Canara Bank & Ors

R.K.GAUBA, J

S. RAVINDRA BHAT, J MAY 01, 2015 sh

* IN THE HIGH COURT OF DELHI AT NEW DELHI Decided on : May 01, 2015 + W.P.(C) 4319/2015, C.M. Nos. 7832/2015 and 7856/2015 M/S. GOLDSPIN INDUSTRIES LTD. .... Petitioner Through: Appearance not given. versus AUTHORIZED OFFICER, CANARA BANK & ORS. .... Respondents Through: Mr. Karan Khanna and Ms. Asmita Kumar, Advs. for Canara Bank. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K.GAUBA MR. JUSTICE R.K. GAUBA: % In the wake of action initiated by the respondent bank having treated the loan account of the third respondent as Non Performing Assets (NPA), the possession of the mortgaged property comprised in land admeasuring 16 kanal 4 Marla, bearing khewat No.140, killa no. 78/6, 7/1 (5-18)' 78/14/2 (1- 13), 15(4-16) & killa No. 78/6, 7/1 (2-5) surrounded by eight feet wall situated in village – Nangal Kalan, Sonepat, Haryana (hereinafter referred to as "the subject property") was taken over in exercise of the authority vested in the mortgagee (respondent bank) in terms of Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as "the SARFAESI Act") divesting the petitioner of its possession on 30-01-2009. The petitioner filed an appeal under Section 17 of the SARFAESI Act, registered as SA No. 19/2009, before Debt Recovery Tribunal – I, Chandigarh (hereinafter referred to as "the DRT"). The said SA was dismissed by the DRT by judgment dated 23-09-2013. The petitioner preferred appeal bearing no. 117/2013 before Debt Recovery Appellate Tribunal (hereinafter referred to as "the DRAT"), which was dismissed by the said appellate authority by order dated 31-03-2015. It is the said order which is assailed through the writ petition at hand, inter-alia, praying for a writ of certiorari seeking the order of DRAT to be quashed and for a direction to the respondent bank to accept the balance amount under the Tripartite Agreement leading to issuance of Sale Certificate in respect of the subject property in its favour. It may be added here that the Tripartite Agreement, thus referred, was executed on 03-01-2003. 2. It is necessary to trace the background facts at some length. 3. The third respondent had availed credit facilities from the respondent bank and had mortgaged the subject property in that context. The said third respondent (borrower) failed to repay its liability to the bank which impelled the latter to file the recovery suit that eventually resulted in judgment dated 14-05-1997 granting a decree for ₹70,46,669/- with interest @ 17.5% p.a. with quarterly rests. The bank took out execution proceedings in RC No. 336/01. It is during the pendency of the said proceedings that the petitioner entered the scene. 4. An agreement was executed between the petitioner and the borrower on 31-12-2001. The dues in terms of the loan liability, then stated to be of ₹90 (ninety) lacs, were taken over by the petitioner in consideration of which the borrower agreed to transfer the title in the subject property in favour of the former. In terms of the said agreement, the petitioner deposited with the respondent bank an amount of ₹30 (thirty) lacs and was, thereafter, put in possession of the subject property. It is the claim of the petitioner that it installed its own machinery worth ₹1.25 crores and then maintained the property with its own funds. It may be added here that DRT in its order dated 23-09-2013 has indicated it to be an undisputed fact that at the relevant point of time, the property was in use and possession of M/s. Hindustan Petro Foams inducted as a tenant by the petitioner. 5. The agreement dated 31-12-2001 was followed by an arrangement in the form of what has been referred as the Tripartite Agreement executed on 03-01-2003 by the petitioner, the borrower and the respondent bank. It appears that in terms of the said Tripartite Agreement, the petitioner was to pay to the respondent bank, in addition to ₹30 (thirty) lacs already pai