Karnataka High CourtM/S Sri. Vinayak Packs vs The Authorized Officer on 19 April, 2023Bench: M.Nagaprasanna-1-\n                                                               WP No. 2677 of 2023\n\n\n\n\n                           IN THE HIGH COURT OF KARNATAKA AT BENGALURU\n\n                                DATED THIS THE 19TH DAY OF APRIL, 2023\n\n                                                  BEFORE\n                              THE HON'BLE MR JUSTICE M.NAGAPRASANNA\n                               WRIT PETITION NO. 2677 OF 2023 (GM-DRT)\n                      BETWEEN:\n\n                      1.   M/S SRI. VINAYAK PACKS\n                           A PARTNERSHIP FIRM REP BY ITS PARTNERS.\n                           SMT. MANJULA, W/O LATE. C. S. PRANESH,\n                           AGED ABOUT 57 YEARS,\n\n                      2.   MS. C. P. RANJITHA,\n                           D/O LATE. PRANESH,\n                           AGED ABOUT 28 YEARS.\n\n                           BOTH ARE R/AT NO.C-330(A),\n                           3RD MAIN ROAD, OPP: 9TH CROSS, 1ST STAGE\n                           PEENYA INDUSTRIAL ESTATE\n                           BENGALURU - 560 058.\n\n                                                                      ...PETITIONERS\n                      (BY SRI. K. DHIRAJ KUMAR, ADVOCATE)\n                      AND:\nPADMAVATHI\nBK                    1.   THE AUTHORIZED OFFICER/CENTRAL BANK OF INDIA\n                           PEENYA INDUSTRIAL AREA BRANCH,\nDigitally signed by        BENGALURU - 560 057\nPADMAVATHI B K\nLocation: HIGH\nCOURT OF              2.   SRI. C. S. VENKATESH,\nKARNATAKA\n                           S/O LATE. C. T. SRINIVASA MURTHY,\n                           A 52/3 SRI. VINAYAKA NILAYA,\n                           2ND FLOOR, 5TH CROSS, SRS ROAD,\n                           PEENYA, BENGALURU - 560 058.\n\n                                                                     ...RESPONDENTS\n\n                      (BY SRI. M. MOHAMED IBRAHIM, ADVOCATE FOR\n                          SRI. ESHWAR PRASAD B., ADVOCATE FOR R1;\n                          SRI. RAJESH SHETTIGAR, ADVOCATE FOR R2)\n                                  -2-\n                                                WP No. 2677 of 2023\n\n\n\n\n     THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF\nTHE CONSTITUTION OF INDIA, PRAYING TO-SET-ASIDE THE\nORDER DATED 16/01/2023 PASSED IN SA. NO. 756/2022 BY\nPRESIDING    OFFICER,   DEBT   RECOVERY    TRIBUNAL-1,\nKARNATAKA, BENGALURU DISMISSING THE SECURITIZATION\nAPPEAL FILED BY THE PETITIONER FOR DEFAULT, PRODUCED\nAT ANNEXURE-N BY RESTORING THE SA NO.756/2022 TO THE\nORIGINAL FILE OF DEBT RECOVERY TRIBUNAL-1, KARNATAKA,\nBENGALURU AND ETC.,\n\n     THIS PETITION, COMING ON FOR ORDERS, THIS DAY,\nTHE COURT MADE THE FOLLOWING:\n\n                                ORDER1.    The petitioners are before this Court seeking to set aside\n\nthe    order   dated     16.1.2023     passed       by   the   DRT   in\n\nS.A.No.756/2022.2. Heard learned counsels for both the parties.3.    The petitioner is the borrower from the first respondent -\n\nCentral   Bank    of   India.    On    the   loan    becoming   sticky,\n\nproceedings were instituted against the petitioners under theSARFAESI Act, 2002 which leads the petitioners to approach\n\nthe DRT in the aforesaid SA. The DRT passes an interim order\n\nwhich reads as follows :"4 a) The operation of the impugned possession notice\n        dated 09.11.2022 issued by the Respondent Bank is\n        hereby stayed subject to the condition that the Applicant-3-WP No. 2677 of 2023\n\n\n\n\n      shall pay an amount Rs.68,96,000/-, being approximate\n      25% of the claim amount within Two months in two\n      equal installments. The Appellant shall pay the first\n      instalment of Rs.34,48,000/- shall be payable on or\n      before 15.012.2022 and the second instalment of\n      Rs.34,48,000/- shall be payable on or 15.01.2023 into\n      the loan account with the Respondent Bank.b)    On     the    next     date     of    hearing    the\n      Petitioner/Appellants shall file before this Tribunal, the\n      proof of having made such payments as mentioned in\n      clause 4(a) above."4. The petitioners were directed to comply with the order on or\n\nbefore 15.12.2022. The petitioners did not comply. The DRT\n\nlater noticing the fact that on, non compliance of the order, on\n\n20.12.2022, the DRT passed the following order :"Both the Counsels are present"Counsel Mohammed Ibrahim has filed vakalath for the\n     respondent Bank, seeks time to file the objections and\n     submits that appellant has not complied the interim order\n     passed by this tribunal.Counsel for the appellant seeks time for complying the of\n     interim order passed by this tribunal and undertakes to\n     deposit the first instalment of the due amount in terms of\n     the interim order on or before 30.12.2022.Heard the submissions of both the counsels.Time is granted and interim order is extended, as prayed\n     for, till next date of hearing, subject to the condition that\n     the appellant shall pay the amount, as undertaken by the\n     appellant, within the stipulated time into the loan account\n     with the respondent Bank, failing which the interim order\n     will be vacated automatically and the SA will be treated as\n     dismissed.-4-WP No. 2677 of 2023\n\n\n\n\n      For objections, list the matter on 24.01.2023."5. The DRT notices that time was granted to comply with the\n\ninterim order, as afore quoted and the appellants/petitioners\n\nherein has not paid the amount within the stipulated time.\n\nTherefore, as undertaken by the petitioners herein, if the loan\n\namount was not paid to the respondent-Bank, the interim order\n\nwill be vacated and the SA would be treated as dismissed. The\n\npetitioners did not pay the said amount and the SA in terms of\n\nthe order was treated to be dismissed. It is at that juncture,\n\nthe petitioners have knocked the doors of this Court in the\n\nsubject petition on 31.1.2023.6. In the peculiar circumstances, this Court entertained the\n\npetition and passed an order on 6.2.2023. The order reads as\n\nfollows :"     There   is     no   representation          on    behalf    of\n      caveator/respondent No.1.Issue emergent notice to respondent No.2.The petitioner is before this Court seeking further time to\n      deposit the amount as was directed by the DRT in\n      S.A.No.756/2022       since     the    petitioner      has   already\n      complied      with    deposit     of     first     installment    of\n      Rs.34,48,000/-.-5-WP No. 2677 of 2023\n\n\n\n\n     The learned counsel appearing for the petitioner submits\n     that he has deposited RS.34,48,000/- in compliance with\n     the direction qua the first installment is before this Court\n     seeking some more time for deposit of the second\n     installment.In the light of the deposit of first installment, I deem it\n     appropriate to permit the petitioner 4 more weeks time to\n     deposit the said amount before the DRT.In the light of the extension being granted, the Bank shall\n     not precipitate the matter till the next date of hearing."7. In terms of the aforesaid order, the petitioners claim to have\n\ndeposited the entire amount as was directed by this Court\n\nwhich is also in compliance with what the DRT had directed. In\n\nlight of the compliance of the petitioners by making the\n\naforesaid payment, I deem it appropriate to set aside the order\n\nof the DRT passed in S.A.756/2022 and restore the appeal\n\nbefore the DRT, along with the interim order that was granted.\n\nIt is for the petitioners and the respondents to adjudicate their\n\nrespective grievances before the DRT.-6-WP No. 2677 of 2023\n\n\n\n\n          All the contentions of the parties are left open.\n\n          Writ petition is disposed of accordingly.Sd/-JUDGE\n\n\nrsList No.: 1 Sl No.: 12CT:PH