- (1.) Challenge in the present writ petition is to an order dated 04.07.2014, passed by the Debts Recovery Appellate Tribunal, Delhi ('Appellate Tribunal' for short), whereby the Appellate Tribunal observed that it is not granting any interim prayer for sale or auction, since the appeal is not property constituted for want of pre-deposit. Such appeal was directed against an order passed by Debts Recovery Tribunal-II, Chandigarh ('the Tribunal' for short) on 09.06.2014, whereby the Tribunal vacated stay on auction and directed Banks for conducting an auction and observing adversely in respect of one time settlement entered upon by the State Bank of India and Oriental Bank of Commerce the other two members of the consortium of three Banks, who had advanced loan to the petitioner to the extent of Rs.127 Crores as in January 2013.
(2.) The three consortium of Banks have loan share i.e. 43.94% of the Punjab National Bank (Rs.61,16,71,357.45); 30.30% of the State Bank of India (Rs.42,18,54,402.68) and 25.76% of the Oriental Bank of Commerce (Rs.35,85,68,250/-) of the total outstanding of Rs.139 crores on the dates of issuance of notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act') in March-May 2013. Since the petitioner defaulted in making payment of the loan amounts, the three Banks served separate notices under Section 13(2) of the Act. Since the loan amount was not settled, a common notice by all the three Banks was issued under Section 13(4) of the Act. After such notice, the petitioner entered into one time settlement with Oriental Bank of Commerce agreeing to pay a sum of Rs.17.25 Crores and Rs.20.96 Crores to the State Bank of India i.e. approximately 43% total dues of such Banks. As per, Annexure R/1, the Oriental Bank of Commerce has been paid a sum of Rs.17,00,51,284/- on or before 26.03.2014, whereas State Bank of India has been paid a sum of Rs.20,76,68,765/- on or before 27.03.2014. Thus, a sum of Rs.25 lakhs is receivable by the Oriental Bank of Commerce and another Rs.20 lakhs by the State Bank of India towards their settlement amount.
(3.) The Punjab National Bank published a public notice for sale of secured assets of the petitioner. A copy of which is appended with the writ petition as Annexure P/14. The challenge of the petitioner under Section 17 of the Act before the Tribunal is in respect of an action of the Respondent Bank, inter alia, on the ground that said Bank has less than 60% of the share of the secured creditors, whereas the majority i.e. Oriental Bank of Commerce and State Bank of India are objecting to the sale proceedings initiated by the Punjab National Bank. Such proceedings were said to be in contravention of the provisions of Section 13(9) of the Act. The Tribunal initially granted stay of auction, but later vacated the order. Such order was challenged before the Appellate Tribunal.;