M/S Gayan Steel Fabrication v. The Union of India and 6 Ors

PageoNo.#o1/3 GAHC010011592024 ooooooo ooooooooooooooo ooooooooooooooooTHEoGAUHATIoHIGHoCOURTo (HIGHoCOURToOFoASSAM,oNAGALAND,oMIZORAMoANDoARUNACHALoPRADESH)o CaseoNo.o:oWP(C)/882/2024o M/SoGAYANoSTEELoFABRICATIONo PROPRIETORoOFoM/SoGAYANoSTEELoFABRICATIONoSRIoNITUNoGAYAN,o AGEDoABOUTo45oYEARSoS/O-oLATEoBANAMALIoGAYAN,oVILL-oMURHANI,o P.O.oCHALCHALI,oPURONIGUDAM,oP.S.oSAMAGURI,oDISTRICT-oNAGAONo (ASSAM) ooooooooooooooooooVERSUSo

1.oTHEoUNIONoOFoINDIAoANDo6oORSo REPRESENTEDoBYoTHEoPRINCIPALoSECRETARY,oDEPARTMENToOFoMICRO,o SMALLoANDoMEDIUMoENTERPRISEoNIRMANoBHAWANoAZADoROAD,oNEWo DELHIo110108 2:THEoCHAIRMANoANDoMANAGINGoDIRECTOR oREPRESENTEDoBYoSMALLoINDUSTRIESoDEVELOPMENToBANKoOFoINDIA oSIDBIoTOWN,o15oASHOKoMART,oLAKHNOWo226001 3:THEoDEPUTYoGENERALoMANAGER oREPRESENTEDoBYoSMALLoINDUSTRIESoDEVELOPMENToBANKoOFoINDIA oSHREEJIoTOWN,o3RDoFLOOR,oGSoROAD oCHRISTIANoBASTI,oGUWAHATI-o781006 4:THEoSTATEoOFoASSAM oREPRESENTEDoBYoTHEoCOMMISSIONERoOFoINDUSTRIESoANDo COMMERCE,oASSAM oUDYOGoBHAWAN,oBAMUNIMAIDAM,oGUWAHATI-21 5:THEoCOMMISSIONER oOFoINDUSTRIESoANDoCOMMERCE,oASSAM oUDYOGoBHAWAN,oBAMUNIMAIDAM,oGUWAHATI-21 6:THEoGENERALoMANAGER oDISTRICToINDUSTRIESoANDoCOMMERCEoCENTREoNAGAON,oASSAM oPIN-o782001 Page No.# 2/3 7:THE BRANCH MANAGER CANARA BANK NAGAON BRANCH SITUATED AT VIP ROAD NAGAON-78200 For the Petitioner : Mrs. G. Borah, Advocate. For the Respondent(s) : Mr. N. Kalita, Advocate on behalf of Mr. A. Kalita, Standing Counsel, Industries and Commerce for respondent Nos.4, 5 & 6. – BEFORE – HON'BLE THE CHIEF JUSTICE MR. VIJAY BISHNOI HON'BLE MR. JUSTICE SUMAN SHYAM

21.02.2024 (Vijay Bishnoi, CJ)

This writ petition is filed by the petitioner essentially challenging the validity of the notice issued by the respondent Financial Institution under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to be as "the SARFAESI Act, 2002"). The petitioner has also challenged the validity of the e-auction sale notice dated 16.02.2021. It is noticed that against the proceedings under Section 13(4) of the SARFAESI Act, 2002 and the e-auction notice dated 16.02.2021, initiated at the instance of the respondent Financial Institution, the petitioner has already approached the Debt Recovery Tribunal (DRT), Guwahati by filing S.A. No.10/2021 and the DRT, Guwahati vide order dated 17.10.2023 (Annexure-20) has already dismissed the said S.A. We are of the firm opinion that against the order passed by the DRT, Guwahati dated 17.10.2023, the petitioner has an efficacious remedy to prefer Page No.# 3/3 an appeal before the Appellate Tribunal under Section 18 of the SARFAESI ACT, 2002. In such circumstances, we are not inclined to entertain this writ petition. The same is therefore dismissed. However, liberty is granted to the petitioner to avail the remedy of appeal before the Appellate Tribunal under Section 18 of the SARFAESI Act, 2002.

JUDGE CHIEF JUSTICE Comparing Assistant