M/S.A.L.Kemgegowda Charitable Trust, v. Authorised Officer,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED 29.01.2021

CORAM

THE HONOURABLE MR. JUSTICE M.SATHYANARAYANAN AND THE HONOURABLE MR. JUSTICE A.A.NAKKIRAN WP.No.17670/2020 & WMP.Nos.21914 & 21915/2020 [Video Conferencing] 1.M/s.A.L.Kempegowda Charitable Trust rep.by its Partners Dr.L.K.Kumar & Uma Kumar 2.L.K.Kumar 3.Uma Kumar ... Petitioners

Versus

The Authorised Officer Central Bank of India No.19A, MG Road Hosur, Krishnagiri District 635109. ... Respondent Prayer:- Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari calling for the records relating to the proceedings of the respondent dated 07.11.2020 and quash the same. For Petitioners:

Mr.K.Nagarajan For Respondent :

Mr.M.L.Ganesh Standing counsel

ORDER

[Order of the Court was made by M.SATHYANARAYANAN, J.] (1)By consent, the writ petition is taken up for final disposal and is disposed of by this order.

(2)The 1st petitioner - Trust had availed the loan facilities and in lieu of the default committed, action was initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [in short ''SARFAESI Act''] and prior to that, the Loan Account was also classified as Non Performing Asset.

(3)The petitioners filed SA.No.129/2020 on the file of the Debts Recovery Tribunal-II, at Chennai, challenging the E-Auction

Sale Notice dated 24.08.2020 and a conditional order was passed directing the petitioner to deposit an amount of Rs.15 Lakhs with the respondent-Bank on or before 28.09.2020 and another sum of Rs.15 Lakhs within a period of three weeks thereafter and the said interim order has not been complied with. Therefore, the respondent-Bank proceeded further and issued the communication dated 17.10.2020, stating among other things that the E-Auction will be conducted on 06.11.2020 with a reserve price of Rs.2.50 Crores and the sale did not fructify into a desired result and accordingly, yet another Notice dated 07.11.2020 was issued stating that the E-Auction sale will be conducted on 26.11.2020 with the reserve price of Rs.2.50 Crores and the petitioners, challenging the impugned notice dated 07.11.2020, came forward to file the present writ petition.

(4)The learned counsel for the petitioners would submit that in the light of the pandemic situation, the hospital was not able to service the debts and if an opportunity is given by way of One Time Settlement, the petitioners will definitely settle the dues and prays for appropriate orders.

(5) Per contra, Mr.M.L.Ganesh, learned Standing counsel appearing for the respondent-Bank would submit that the Auction Sale Notice dated 26.11.2020 did not result in any desired result and as such, nothing survives for further adjudication in this writ petition.

(6)This Court has considered the rival submissions and also perused the materials placed before it.

(7)In the light of the counter affidavit dated 14.12.2020 filed by the respondent-Bank coupled with the submissions made by the learned Standing counsel appearing for the respondent-Bank that in the auction sale held on 26.11.2020, there were no bidders, this Court is of the considered view that nothing remains for further adjudication in this writ petition.

(8)In the result, the writ petition is dismissed as infructuous. No costs. Consequently, the connected miscellaneous petitions are closed.

Sd/- Assistant Registrar(CS V) //True Copy// Sub Assistant Registrar

AP To The Authorised Officer, Central Bank of India, No.19A, MG Road, Hosur, Krishnagiri District 635 109.

+1cc to Mr.K.Nagarajan, Advocate Sr.4976 WP.No.17670/2020 vg II[co] srg 25/02/2021