Jagannath Cashew Processing Unit (Loanee) & another Vs Registrar (Orissa High Court)
Orissa High Court held that auction sale by the bank under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) justified as there was no information available with bank regarding existence of status quo order.
Facts- This writ petition has been filed by the petitioners assailing the order dated 15.11.2019 passed by the Debts Recovery Appellate Tribunal, Kolkata (DRAT) in Appeal No.42 of 2019, whereby the learned Appellate Tribunal allowed the appeal filed by the State Bank of India (since merged with Union Bank of India) and reversed the order dated 02.04.2019 of Debts Recovery Tribunal, Cuttack (DRT). By the said order dated 02.04.2019, the DRT had allowed the application filed by the petitioners u/s. 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), quashed the demand and possession notices as well as the auction sale and directed refund of the auction purchaser’s money with interest.
The petitioners seek quashing of the DRAT order and a declaration that the measures taken by the bank under Sections 13(2), 13(4) and 14 of the SARFAESI Act, including the auction sale and the consequential sale certificate and registered sale deed executed in favour of Opposite Party No.5, are illegal and void.
