Canara Bank Vs Antriksh Builders & Developers Pvt. Ltd (DRAT Allahabad)
The appeal before the Debts Recovery Appellate Tribunal (DRAT), Allahabad, was filed under Section 18 of the SARFAESI Act, 2002, challenging the order dated 14.09.2023 passed by the DRT, Lucknow, which had allowed the borrower’s securitisation application and set aside the Bank’s SARFAESI measures.
The borrower, a private limited company, had availed credit facilities from the Bank, secured by guarantees executed by individual guarantors and a corporate guarantor, along with an equitable mortgage created over immovable property. Upon default, the account was classified as a non-performing asset on 31.03.2016. A demand notice under Section 13(2) of the SARFAESI Act dated 22.04.2016 was issued, followed by a possession notice under Section 13(4). Symbolic possession was taken, and after obtaining a valuation report, an auction sale notice dated 30.06.2022 was issued, scheduling the auction on 05.08.2022. The property was sold to an auction purchaser, and an order under Section 14 of the Act was obtained from the District Magistrate.
The borrower challenged the entire SARFAESI proceedings before the DRT. The DRT allowed the application, setting aside the possession notice, auction sale, and any sale certificate issued, directing restoration of possession to the borrower and refund of the auction amount to the auction purchaser with applicable interest. Aggrieved, the Bank filed the present appeal.
