Case Law Details
Chaudhary Ventures Pvt. Ltd & Ors. Vs Union of India & Anr. (Delhi High Court)
Introduction: In a significant ruling, the Delhi High Court has directed the Chairperson of the Debt Recovery Appellate Tribunal (DRAT) to make a swift decision regarding the application for waiver of the 25% deposit required in the securitization application filed by Chaudhary Ventures Pvt. Ltd & Ors. against the Union of India & Anr. This case highlights the complexities involved in the securitization process and the impact of judicial directions on the parties involved.
Detailed Analysis: The writ petition filed by Chaudhary Ventures Pvt. Ltd & Ors. challenged the order dated October 6, 2023, passed by the Debt Recovery Tribunal II, Delhi (DRT II, Delhi), which dismissed their securitization application (SA No. 351/2022). The petitioners appealed against this dismissal to the DRAT in Regular Appeal No. 387/2023 and also sought a waiver for the remainder of the 25% pre-deposit amount required for the appeal, having already deposited a part of the demanded amount.
The appeal to the DRAT was necessitated due to several grievances against the impugned order, including non-service of possession notice under Section 13(4) of the SARFAESI Act and allegations of an excessive and unilaterally changed rate of interest by the respondent bank (Respondent No. 2).
Due to the Chairperson of DRAT, Delhi being on leave and the subsequent absence of a provision for virtual hearings in DRAT, Chennai (the Link Officer’s jurisdiction), an urgent hearing could not be arranged. Recognizing the urgency of the matter and the absence of an alternative efficacious remedy, the Delhi High Court stepped in to ensure justice was not delayed.
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