- (1.) This writ petition has been filed challenging the order dated 01.07.2015 passed by the Debts Recovery Appellate Tribunal, Allahabad rejecting the application of the petitioners for waiver of the statutory deposit under Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short SARFAESI Act, 2002).
(2.) Considering the issues involved, the facts need not be stated in detail. Suffice it to say that the petitioners were granted three different loans on 25.08.2010, namely cash limit for a sum of Rs.5.70 crores, term loan of one crore and bank guarantee for a sum of rupees three crores by respondent no. 2. The petitioners did not repay the loan to the bank and all the three loan accounts of the petitioners were declared as non-performing assets (NPA) on 30.11.2011. The respondent-bank thereafter issued a demand notice under Section 13 (2) of the SARFAESI Act, 2002 on 05.06.2012 to the petitioners for a sum of Rs.5,88,34,840/- plus interest and expenses with effect from 01.11.2011 and since no amount was paid by the petitioners as per the demand notice the respondent-bank initiated recovery proceedings under Section 13 (4) of the SARFAESI Act, 2002. A notice under the said provision was issued to the petitioners on 22.11.2012.
(3.) The petitioners filed a securitisation application no. 7 of 2013 before the learned Debts Recovery Tribunal, Lucknow under Section 17 of the SARFAESI Act, 2002 challenging the possession notice dated 22.11.2012 issued by the respondent but the same was dismissed vide order dated 15.09.2014. During pendency of the proceedings under Section 17 auction of the secured assets was conducted on 26.03.2014 for recovery of the amount due from the petitioner. Since no bid came up, therefore, the bank exercising its powers under Section 13 (5A) and (5B) of the SARFAESI Act, 2002 confirmed the bid in its favour and 25% of the bid amount was deposited immediately by the purchaser i.e. respondent-bank and the remaining amount was deposited on 03.04.2014 and sale certificate was issued. Being aggrieved by the said order dated 15.09.2014 the petitioners filed appeal before the Debts Recovery Appellate Tribunal (hereinafter referred to as DRAT) which was numbered as Appeal SR No. 273 of 2014 under Section 18 of the SARFAESI Act, 2002 along with waiver application.;