Calcutta High CourtAP-COM/1076/2024disposed

M/S Ugro Capital Limited (Formerly Known As Chokhani Securities Llp) v. M/S City Timber And Saw Mill And ORS

2025-05-15Hon'Ble Justice Shampa Sarkar2 pages

OCD-7 AP-COM/1076/2024

IN THE HIGH COURT AT CALCUTTA

ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL DIVISON M/S UGRO CAPITAL LIMITED (FORMERLY KNOWN AS CHOKHANI SECURITIES LLP) VS M/S CITY TIMBER AND SAW MILL AND ORS.

BEFORE:

The Hon'ble JUSTICE SHAMPA SARKAR Date : 15th May, 2025.

Appearance:

Mr. Paritosh Sinha, Adv.

Mr. K.K. Pandey, Adv.

Ms. Pooja Sett, Adv.

Ms. Mallika Bothra, Adv.

. . .for the petitioner.

The Court: Affidavit of service is taken on record. None appears for the respondents.

This is an application under Section 9 of the Arbitration and Conciliation Act, 1996. The petitioner had prayed for an order of injunction on the mortgaged property It is submitted that the petitioner being the non-banking financial institution has already proceeded against the borrower under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act).

This Court is of the view that, once the proceeding under SARFAESI Act is initiated, there is an automatic injunction on the secured asset, by operation of law.

Under such circumstances, the application has become infructuous and is disposed of accordingly.

(SHAMPA SARKAR, J.) sp/