Case Law Details
OPC Asset Solutions Private Limited Vs Hero Fincorp Limited & Anr. (Delhi High Court)
The matter came before the Delhi High Court. Counsel for defendant No.1 referred to the order dated 01.12.2023 stating that the defendant was not taking any steps pursuant to the notice dated 03.07.2023 issued under Section 13(2) of the SARFAESI Act and that the notice would be withdrawn. On instructions, counsel for defendant No.1 further stated that the defendant had no monetary claims against the plaintiff and that any communication sent to National E-Governance Services Limited classifying the plaintiff as a debtor would be withdrawn within four weeks. It was also clarified that the plaintiff was neither a borrower nor a debtor and that any classification of the plaintiff as a non-performing asset would be withdrawn.
Procedural History
The plaintiff sought permission to withdraw the petition in view of the statement made by defendant No.1. The plaintiff also submitted that defendant No.2 was under liquidation and an official liquidator had already been appointed.
Legal Issue
Whether the petition should continue after the statements made by defendant No.1 regarding withdrawal of the SARFAESI notice and debtor classification.
Relevant Statutory Provisions
- Section 13(2) of the SARFAESI Act
Parties’ Submissions
- Defendant No.1: Submitted that it had no monetary claims against the plaintiff, would withdraw the Section 13(2) SARFAESI notice, withdraw communications classifying the plaintiff as a debtor within four weeks, and clarified that the plaintiff was neither a borrower nor a debtor and that any NPA classification would be withdrawn.
- Plaintiff: Sought leave to withdraw the petition in view of the statement made by defendant No.1 and informed the Court that defendant No.2 was under liquidation with an official liquidator appointed.
Court’s Findings and Directions
The Court granted leave to withdraw the petition. It clarified that recourse to any other remedy between the parties remained open. Since the suit had been withdrawn, the dates fixed before the Joint Registrar on 10.01.2024 and before the Court on 06.02.2024 were cancelled.
Final Decision
The Delhi High Court granted leave to withdraw the petition and dismissed it as withdrawn along with the pending application, while leaving other remedies between the parties open.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Learned counsel for defendant No.1 invites the attention of the Court to the order dated 01.12.2023 wherein it has been stated that the answering defendant is not taking any steps in terms of the notice dated 03.07.2023 issued under Section 13 (2) of the SARFAESI Act which will be withdrawn.
2. Today, learned counsel, on instructions, submits that the answering defendant has no monetary claims against the plaintiff and any communication written to National E-Governance Services Limited whereby the plaintiff was classified as a debtor would be withdrawn within four weeks from today. He further clarifies that the plaintiff is neither a borrower nor a debtor and if any classification of plaintiff is done as a non-performing asset, the same would be withdrawn.
3. Learned Senior Counsel for the plaintiff submits that insofar as defendant No.2 is concerned, the same is under liquidation and an official liquidator has already been appointed.
4. In view of the statement made by learned counsel for defendant No.1, the plaintiff seeks leave to withdraw the present petition.
5. Leave, as prayed for, is granted. The present petition is dismissed as withdrawn alongwith the pending application.
6. It is clarified that recourse to any other remedy between the parties is left open.
7. Since the suit has been withdrawn, the dates already fixed before Joint Registrar on 10.01.2024 and before Court on 06.02.2024 are cancelled.
Author Bio
