Dhanvridhi Commercial Pvt. Ltd Vs Authorized Officer (DRAT Kolkata)
The Debts Recovery Appellate Tribunal (DRAT), Kolkata, dismissed appeals filed by both the borrower and the bank against an order of the Debts Recovery Tribunal (DRT)-III, Kolkata, arising out of proceedings under Section 17 of the SARFAESI Act, 2002.
The borrower had challenged the bank’s SARFAESI action and possession notice dated 04.01.2019. During the pendency of the securitisation application, the secured asset was auctioned for ₹1,40,58,000. Subsequently, the borrower and the bank entered into a One Time Settlement (OTS) dated 21.08.2024 for ₹2,03,00,000, which was fully paid by the borrower. The bank issued a No Due Certificate on 29.10.2024, withdrew its Original Application, and both parties jointly sought withdrawal of the securitisation application.
The DRT declined to accept the settlement because the auction purchaser, who was a party to the proceedings, objected to the withdrawal. The auction purchaser had also filed a contempt petition alleging non-compliance with the DRT’s earlier order dated 07.03.2024, which had set aside the auction sale and directed the bank to refund ₹1,59,10,031 with 12% per annum interest within 30 days, while permitting the bank to conduct a fresh auction. The bank’s appeal against that order had been withdrawn on 06.05.2025, resulting in the order attaining finality.
