P.S. SIVAPERUMAL AND ORS. Vs. AUTHORISED OFFICER, UCO BANK AND ORS.

JUDGEMENT

(1.) The petitioners have challenged the order dated 22.05.2019 in AIR.No.5 of 2019 on the file of the Debt Recovery Appellate Tribunal, Chennai dismissing the appeal for non-compliance of pre-deposit in the waiver application in IA.No.208 of 2019.

(2.) For a better understanding, running through the facts of the case briefly is essential:

(3.) However, it appears that the accounts were upgraded after Rs.18.81 crores was remitted by the petitioners by way of sale of the AnnaNagar property and the accounts turned non-performing assets again on 31.03.2015, after which notices under Section 13 (2) of SARFAESI Act were again issued on 20.04.2015 and thereafter a symbolic possession notice under Section 13 (4) of SARFAESI Act was issued on 09.07.2015. Simultaneously, the first respondent Bank also filed an Original Application before Debts Recovery Tribunal II, Chennai in respect of two accounts viz., M/s.Rathna Stores Private Limited and M/s.Rathna Stores Firm (Partnership) numbered as OA.No.649 of 2015 and OA.No.380 of 2016 respectively. Both the Original Applications were allowed by Debts Recovery Tribunal II, Chennai and Debt Recovery Certificates (DRC) were issued on 14.09.2017 and 23.10.2017 respectively. One of the five properties viz., the Egmore property was sold for Rs.26 crores on 20.10.2016 as per the compromise proposal approved by the first respondent Bank and the proceeds was credited to all the three accounts as requested by the borrower. Similarly, the commercial shop at Usman Road was also sold by Liquidator under NCLT for Rs.27.60 crores and credited to M/s.Rathna Stores Private Limited. Subsequently, on 16.10.2018, the first respondent Bank issued sale notice for the remaining two properties namely Hotel Sivapriya in Kodaikanal and Commercial shop property at Pondy Bazar, T.Nagar. The Kodaikanal Hotel property was sold for Rs.8.71 crores in the auction on 02.11.2018 and the amount was credited to M/s.Rathna Stores Private Limited on 03.01.2019. Aggrieved over this sale, the petitioners being the actual owners of the Kodaikanal property have contested the sale in SA.No.287 of 2018 in Debts Recovery Tribunal II, Chennai and while the auction was allowed subject to confirmation of sale kept pending vide its order dated 31.10.2018. In the final order, the petitioners were directed to pay the entire bid amount of Rs.8.71 crores for the Kodaikanal property before 31.12.2018, failing which the first respondent Bank had the liberty to confirm the sale. The petitioners appealed to the Debt Recovery Appellate Tribunal, Chennai against this order of the Debts Recovery Tribunal II, Chennai in AIR.No.5 of 2019. The Debt Recovery Appellate Tribunal, Chennai concluded that the appeal cannot be considered without pre-deposit of Rs.10 crores vide its order dated 22.05.2019. This order is challenged in this Writ Petition. Another Writ Petition in WP.No.33677 of 2019 challenging an order of the Debt Recovery Appellate Tribunal, Chennai dated 25.03.2019 in IA.No.208 of 2019 in AIR.No.5 of 2019 was disposed of by this Court modifying the pre-deposit amount payable for appeal to be heard before Debt Recovery Appellate Tribunal, Chennai to be remitted within three weeks of the date of the order ie., 02.12.2019. The petitioners have not complied with it.