Shrim Industries Pvt Ltd & Ors. v. Authorized Officer Bank of Baroda & Anr.

Delhi High Court · 12 Apr 2022 · 2022:DHC:1361-DB
Rajiv Shakdher; Poonam A. Bamba
W.P.(C) 14769/2021
2022:DHC:1361-DB
civil petition_allowed

AI Summary

The Delhi High Court granted limited interim protection for 15 days to petitioners to approach the DRAT with a statutory appeal under Section 18 of the SARFAESI Act, subject to compliance with pre-deposit requirements.

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W.P.(C) 14769/2021
HIGH COURT OF DELHI
Date of Decision: 12.4.2022
W.P.(C) 14769/2021 and C.M. No. 46473/2021
SHRIM INDUSTRIES PVT LTD & ORS. ..... Petitioners
Through: Mr Rajiv Bakshi and Mr Ram Pravesh Rai, Advocates.
VERSUS
AUTHORIZED OFFICER BANK OF BARODA & ANR. ..... Respondents
Through: Mr Arun Aggarwal and Ms Sanjana Mishra, Advocates for R-1 &2.
CORAM:
HON'BLE MR JUSTICE RAJIV SHAKDHER
HON'BLE MS JUSTICE POONAM A. BAMBA [Physical court hearing/ hybrid hearing (as per request)]
RAJIV SHAKDHER, J. (ORAL)
JUDGMENT

1. Learned counsel for the petitioners does not dispute the fact that against the impugned order dated 07.12.2021, passed by the Debts Recovery Tribunal [DRT] located at Jaipur, a statutory appeal under Section 18 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [in short “SARFAESI Act”], lies with the Debts Recovery Appellate Tribunal [DRAT].

2. Given this position, learned counsel for the petitioners says that the 2022:DHC:1361-DB W.P.(C) 14769/2021 petitioners will approach the DRAT, provided the petitioners are protected for the next 15 days.

2.1. Mr Arun Aggarwal, who appears on behalf of the respondents, contends to the contrary.

3. We are of the view that since the petitioners would also be required to garner funds towards pre-deposit in terms of the second proviso to Section 18 of the SARFAESI Act, the protection sought for the period of 15 days is not an unreasonable request.

4. Accordingly, the writ petition is disposed of with the following directions:

(i) The petitioners will approach the DRAT, within the next 15 days.

(ii) No precipitate action will be taken against the petitioner for the next 15

(iii) In case, the petitioners do not approach the DRAT in the timeframe set forth hereinabove, the protection given to the petitioners will stand dissolved automatically.

5. Consequently, pending application shall stand closed.

RAJIV SHAKDHER, J POONAM A. BAMBA, J APRIL 12, 2022 Click here to check corrigendum, if any