Aparesh Kumar Singh, J. - (1.) HEARD learned counsel for the parties. The petitioner, is a Bank, who has preferred this writ application seeking quashing of an order contained in letter no. 329 dated 11th October, 2012 (Annexure -4) issued by the District Authorities, whereby it has directed the petitioner -Bank to release the two flats which were earlier sealed in execution of SARFAESI proceeding in exercise of powers conferred under Section 13(4) read with Section 14 of the SARFAESI Act, 2002, to the private respondent nos. 4 & 5, who are the flat owners of the said flats in question.
(2.) THE background of the instant case which are necessary to be noticed are given hereunder. The properties comprised of the land and building situated on R.S. Plot No. 193, Sub Plot No. 193/3, Khata No. -74, Thana No. 186, at Village -Chiroundi, P.S. - Bariyatu, District -Ranchi, Area -6 Katha. Bounded as under: North -R.S. Plot No. 195; South - 14 Ft. Wide Road and part of Pot No. -193. East -Plot No. -193 and Part of Sub Plot No. 2. West -Plot No. 193 and Part of Sub Plot No. 4 were the subject matter of equitable mortgage in respect of a loan advanced to M/s. Mattress World by the petitioner -Bank, which was subsequently enhanced to Rs. 60 lakhs. The Proprietor of M/s. Mattress World is Smt. Jayanti Devi wife of Sri Tribhuwan Nath Tiwari. Sri Vikaram Kumar Tiwary, son of Tribhuwan Nath Tiwari was the guarantor of the account. As per the sanction letter equitable mortgage of immovable property as described hereinabove standing in the name of Sri Vikaram Kumar Tiwari was the collateral security for the said loan apart from other security extended by the borrower. The borrower subsequently became defaulter and the account was classified as non -performing asset on 28th April, 2012, on which date an amount of Rs. 63,67,718/ - was due against the borrower. Accordingly, on 30th April, 2012, notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter to be referred as the SARFAESI Act) was issued on the borrower and the guarantor. Both filed their objection, which was duly replied by the Bank through letter dated 2nd July, 2012. Thereafter, in exercise of powers under Section 13(4) possession notice was issued on 30th August, 2012 under the provisions of the said Act and pasted in the premises of the aforesaid mortgage property on the same date and was published in the Newspaper on 2nd September, 2012. The borrower being aggrieved preferred appeal being SARFAESI Appeal no. 101/2012 under Section 17 of the aforesaid Act of 2002, wherein the petitioner -Bank appeared on notice and filed its objection. Thereafter the petitioner -Bank made an application before the Deputy Commissioner, Ranchi for providing police force for taking physical possession of the property through a request letter dated 25th September, 2012 (Annexure -3). On such application, upon the direction of the Deputy Commissioner /District Certificate Officer deputed the force for taking physical possession of the property on 4th October, 2012. On that day in presence of the Magistrate and the police the physical possession of the property was taken by the petitioner -Bank. The property comprised multi -storied building including the land, in which there were nine flats, out of which two were occupied by the respondent nos. 4 and 5. The respondent nos. 4 & 5 thereafter preferred a representation before the Deputy Commissioner, Ranchi on 9th October, 2012, raising several grievances relating to the action of the petitioner -Bank in taking physical possession of the property. On that representation, the impugned order dated 11th October, 2012 was passed by the Deputy Commissioner, Ranchi, issued under the signature of the District Certificate Officer, Ranchi, which is impugned in the present writ application. On the representation of the respondent nos. 4 & 5, it was observed in the said letter addressed to the Branch Manager of the petitioner -Bank that sealing of flats of these persons were improper, as the application was made for taking physical possession of the property of one Vikaram Kumar Tiwary. Therefore, the flats standing in the name of these respondents who were applicants before the Deputy Commissioner be unsealed and the Deputy Commissioner be informed of the same.
(3.) INITIALLY when the writ petition was filed, vide an order dated 15th October, 2012, the impugned order dated 11th October, 2012 was stayed by this Court. Thereafter, the respondent nos. 4 & 5 appeared and preferred an interlocutory application being I.A. No. 3338 of 2012 for vacation of the interim order. On such application vide order dated 22nd November, 2012, the interim order dated 15th October, 2012 was vacated by learned Single Judge of this Court. Thereafter, the petitioner -Bank went in appeal before the Division Bench of this Court in L.P.A. No. 541 of 2012. The private respondents herein were also heard and thereafter the Letters Patent Appeal was disposed of by requesting the learned Single Judge to decide the writ application expeditiously after taking the note of all subsequent events so that the multiplicity of proceedings and passing of conflicting orders may be avoided. In the meantime, an important development had taken place. On the basis of order dated 22nd November, 2012, the Deputy Commissioner wrote to the petitioner -Bank to hand over possession of the flats to the private respondents in compliance with the interim order passed by this Court. The possession of the flats was restored to the private respondents after deputation of police force as per the statement of the petitioner -Bank on 14th December, 2012. One more development had taken place in the meantime as the private respondent nos. 4 & 5 preferred SARFAESI Appeal invoking Section 17 of the Act, 2002 on 6th November, 2012 being SARFAESI Appeal No. 124 of 2012 on being aggrieved by the action of the petitioner -Bank in taking the physical possession of the property in execution of its right under the provisions of the SARFAESI Act. During the pendency of the writ application, the said SARFAESI Appeal was also heard in presence of the petitioner -Bank who was the respondent therein and on 15th November, 2012 an interim order was passed. The operative portion of the order is quoted as under: As such, the authorized Officer of the respondent bank is directed to remain in possession of the question immovable properties till disposal of the captioned SARFAESI Appeal and were the authorized Officer shall not proceed further in selling out the questioned immovable properties including passing of order on confirmation of sale upon the questioned immovable properties including two units of flats claimed by the appellants till disposal of the said SARFAESI Appeal S.A. No. 124 of 2012 and accordingly the interim application on stay of the Recovery Proceedings by the petitioners on 06.11.2012 is allowed herewith in the matter.;