R.Ramachandran v. The Deputy Registrar
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.10.2024
CORAM
THE HON'BLE Mr. JUSTICE S.S.SUNDAR AND THE HON'BLE Dr. JUSTICE A.D.MARIA CLETE AND W.M.P.Nos.34694 & 34695 of 2024 R.Ramachandran .. Petitioner Vs.
1.The Deputy Registrar National Company Law Tribunal, Chennai Bench Corporate Bhawan II Floor Beach Road, Mannadi, George Town Chennai 600 001 2.The Registrar National Company Law Tribunal Block No.3, Ground, 6th, 7th & 8th Floor C.G.O. Complex, Lodhi Road New Delhi 110 003 3.State Bank of India Rep. by its General Manager Red Cross Building 32, Monteith Road, Egmore Chennai 600 008 4.Shri Amir Hamas Ali Abbas Rawthar Liquidator appointed under IBC, 2016 Room No.94, SBIOA Unit Enclave Mambakkam PO, Chennai 600 127 1/6
5.GBJ Hotels Private Limited Having office at 164/165, Avinashi Road Peelamedu, Maheshwari Nagar Coimbatore 641 004 .. Respondents Writ Petition filed under Clause 15 Article 226 of the Constitution of India, praying for issuance of a writ of Certiorari calling for the records of the proceedings of the National Company Law Tribunal (1st respondent) in IA/IBC/ 530/CHE/2023 in CP/243/2021 dated 09.02.2024 directing the joint e-auction and quash the same and consequently issue a writ of declaration declaring the sale certificate issued by virtue of the issuance of confirmation of sale dated 31.07.2024 to the purported auction purchaser vide the e-auction conducted on 17th/18th day of July 2024 as null and void.
For Petitioner : Mr.S.R.Raghunathan for Mr.Vigneshwar Elango
O R D E R
(Made by S.S.SUNDAR, J.) We do not find any merit in this writ petition. It is admitted that the Bank has already proceeded against the property under Securitisation And Reconstruction of Financial Assets and Enforcement Security Interest Act, 2002 (SARFAESI Act) and possession has been taken. 2/6
2. When the property is sold in favour of a third party, the petitioner has filed this writ petition for a declaration that the sale certificate issued in favour of the said third party as null and void. As the sale is pursuant to an order of National Company Law Tribunal (NCLT) dated 09.02.2024, the petitioner has not exercised his right or redemption, till the sale is confirmed.
3. It is seen that only at the instance of the Official Liquidator, an application was filed before the NCLT. Only to get maximum value of the assets, the NCLT passed the order directing joint sale of properties of the corporate debtor and the guarantor both under the Insolvency and Bankruptcy Code, 2016 (IBC) and SARFAESI Act, by issuing joint sale notice. This order is not to prejudice the rights of the petitioner as owner of the property to redeem the mortgage. It is seen that the NCLT has passed the order on the following lines :
"(i) In order to maximize the value of the assets of the corporate debtor, the applicant along with the respondent No.1 (SBI) shall take steps to conduct a joint sale of the properties of the corporate debtor and the guarantor both under IBC, 2016 and SARFAESI Act, 2002, by issuing a Joint e-auction sale notice. (ii) It is made clear that the respondents 2 and 3 (whose properties have been taken possession under SARFAESI Act 2002), shall have their rights and remedies available under the SARFAESI Act."
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4. Since the rights of the petitioner to seek remedy available under SARFAESI Act is protected, this Court finds no legal injury to the petitioner to entertain this writ petition. Therefore, this writ petition stands dismissed. No costs. Connected C.M.P.s are closed.
[S.S.S.R.,J.] [A.D.M.C., J.] 28.10.2024 Index : Yes/No gya 4/6
To 1.The Deputy Registrar National Company Law Tribunal, Chennai Bench Corporate Bhawan II Floor Beach Road, Mannadi, George Town Chennai 600 001 2.The Registrar National Company Law Tribunal Block No.3, Ground, 6th, 7th & 8th Floor C.G.O. Complex, Lodhi Road New Delhi 110 003 3.The General Manager State Bank of India Red Cross Building 32, Monteith Road, Egmore Chennai 600 008 5/6
S.S.SUNDAR, J.
AND A.D.MARIA CLETE, J.
gya 28.10.2024 6/6