Beenashree & Anr Vs Canara Bank & Ors (Karnataka High Court)
Karnataka HC Stays DRT Auction – Orders No Coercive Steps Until Borrowers’ Recall Plea Is Decided
Background
Petitioners Smt. Beenashree & Sri Bharath P challenged the attachment warrant (12.03.2024) & sale proclamation issued by the Recovery Officer, DRT-II, Bengaluru, in RC No.47/2022 (OA No.972/2019) initiated by Canara Bank for recovery of ₹78,21,900 with interest.
The petitioners contended that they were unaware of the DRT proceedings as notices were sent to their old addresses, & hence sought recall of the DRT’s order dated 23.12.2024, which directed issuance of the Recovery Certificate.
Proceedings
- The petitioners filed an application under Section 22(2)(H) of the Recovery of Debts & Bankruptcy Act, 1993, before the DRT for recall of the recovery order.
- The High Court earlier granted interim protection, directing deposit of ₹20 lakh in two installments.
- As there was delay in compliance, the interim order was vacated on 29.04.2025, though liberty was granted to seek restoration.
Petitioners’ Stand
They claimed to have now complied with the deposit requirement & requested that no coercive measures (auction or sale) be taken till the DRT decides their pending recall application.
Respondent Bank’s Stand
The Bank acknowledged that no further proceedings had been initiated after the interim order’s vacation, but insisted on expeditious disposal of the matter by the DRT.
