Mahipal Singh Yadav v. Union Bank of India & Anr

VIPIN SANGHI, J

JASMEET SINGH, J

JANUARY 24, 2022/ "ms"

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Reserved on: 07.01.2022 Pronounced on: 24.01.2022 + W.P.(C) 357/2022 & CM APPLs.988 - 989/2022 MAHIPAL SINGH YADAV ..... Petitioner Through: Mr. Amarjeet Singh Rakhra, Adv. versus UNION BANK OF INDIA & ANR. ..... Respondents Through: Mr. Samarendra Kumar, Adv. for Union Bank of India. CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE JASMEET SINGH J U D G M E N T O F T H E C O U R T 1. The present writ petition has been filed by the petitioner assailing the order dated 13.12.2021 passed by the Debt Recovery Tribunal (DRT), Jaipur, whereby the learned DRT has rejected the Interim Relief Application filed by the petitioner in pending Securitisation Application (S.A.) No. 22 of 2019 renumbered as T.S.A. application 50 of 2021. In addition, the petitioner is also challenging the action of the respondent Bank (formerly known as Andhra Bank) taken in consequence of the passing of the impugned order dated 13.12.2021, namely, the execution of Sale Certificate dated 16.12.2021 in favour of respondent No.2. 2. The primary prayers in the writ petition are as under:- ―A. Issue Writ, Order, or Direction in the nature of Certiorari quashing the order dated 13.12.2021 passed by DRT, Jaipur in Transferred Securitization Application No. 50 of 2021; Mahipal Singh Yadav vs. Union Bank of India; B. Issue Writ, Order, or Direction quashing the Sale Certificate dated 16.12.2021, drawn in favour of O.P. No.2 which is a consequential act of the Respondent Bank, as a result of the passing of the impugned order dated 13.12.2021; 3. Even though in terms of the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 (hereinafter referred as the SARFAESI Act), any person aggrieved by an order of the DRT has a right to prefer an appeal before the Debt Recovery Appellate Tribunal (DRAT) under Section 18 of the Act, 2002, however, the office of DRAT has been lying vacant since 30.10.2021. 4. The Supreme Court in its order dated 16.12.2021 has requested the concerned High Court(s) to entertain the matters falling within the jurisdiction of DRTs and DRATs, as a stop-gap arrangement, with the objective of addressing the grievance of the petitioner who, on account of such vacancy, may not be able to exercise their legal rights. In this view of the matter, the petitioner has preferred the writ petition and the same is being entertained by this Court. 5. The facts and the disputes in the present case lay within a narrow compass. 6. One M/s J.S. Medimax Pvt. Ltd. availed a loan of about Rs. 27.09 Crores from the respondent Bank during 2015-17, and the petitioner stood as a Guarantor for the said loan account by offering his residential house bearing No. D-2/13, Plot No.23, Khasra No. 16/25, Village Dabri, Vashisth Park, New Delhi – 110046 (hereinafter referred as the subject property) as security. On 30.12.2017, the loan account of M/s J.S. Medimax Pvt. Ltd. became NPA, and consequently a notice under Section 13(2) of the SARFAESI Act was issued by the respondent Bank on 02.01.2018. 7. Since the amount demanded by the respondent Bank in its notice under Section 13(2) of the SARFAESI Act was not paid by the Borrower, the respondent Bank on 03.07.2018 issued a notice under Section 13(4) of the SARFAESI Act in respect of the mortgaged property. The respondent Bank issued another notice dated 04.07.2018 under Section 13(2) of the Act, and on 09.09.2018, the petitioner received a notice dated 03.08.2018, informing the petitioner about the sale of the subject property. 8. Since the petitioner felt that the notice was violative of Rule 6(2), 8(5) and 8(6) of the Security Interest (Enforcement) Rules, 2002, the petitioner filed a Securitisation Application under Section 17 of the SARFAESI Act, 2002 before DRT-I, Delhi being S.A. No. 22 of 2019., The respondent Bank filed its reply. 9. Since the auction, which was proposed to be conducted pursuant to t