IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2019 BEFORE BETWEEN:
THE HON' BLE MR. JUSTICE B. VEERAPPA WRIT PETITION No.52180/2019(GM-DRT) 1. DR. K. BALARAMAN SON OF LATE. SRI. KRISHNASWAMY, AGED ABOUT 72 YEARS, PROPRIETOR OF KRSNA PROJECTS, HAVING OFFICE AT NO. 559, RMV II STAGE, NEW BEL ROAD, DOLLARS COLONY, BENGALURU 560094.
2. VIKRAM BALARAMAN, SON OF DR. K. BALARAMAN AGED ABOUT 40 YEARS, RESIDING AT NO. 559, RMV II STAGE, NEW BEL ROAD, BENGALURU 560094.
(BY SRI VIVEK HOLLA, ADVOCATE FOR SRI SANJAY H SETHIYA, ADVOCATE) AND:
SHRIRAM HOUSING FINANCE LIMTED A BODY REGISTERED UNDER SEC 29.A OF THE NATIONAL HOUSING BANK ACT 1987,. HAVING ITS REGISTERED OFFICE AT NO. 123, ANGAPPA NAICKEN STREET, CHENNAI 600001 .
AND HEAD OFFICE AT LEVEL 3, WOCKHARDT TOWERS, EAST WING C-2 BLOCK, ...PETITIONERS BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI 400051, AND ONE OF ITS’ BRANCH OFFICE AT NO. 96, RB MANOR, GROUND FLOOR, 20TH MAIN, RAJAJINAGAR, 2ND BLOCK, WEST OF CHORD ROAD, BENGALURU 560010.
REPRESENTED BY ITS MANAGER …RESPONDENT (BY SRI K.V. LOKESH, ADVOCATE FOR C/R) …… THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 19.11.2019 PASSED IN CRL. MISC. No.4593/2019 BY THE VIII ADDITIONAL CHIEF METROPOLITAN MAGISTRATE BENGALURU AS PER ANNEXURE- A ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER The petitioners in the above writ petition have sought to quash the impugned Order dated 19.11.2019 made in Crl.Misc.No.4593/2019 passed by the VIII Additional Chief Metropolitan Magistrate, Bengaluru, vide Annexure-A and to quash the impugned Order dated 05.12.2019 made in S.A.No.523/2019 passed by the Debts Recovery Tribunal-I, Bengaluru, vide Annexure-B and to permit the petitioners to file rejoinder to the statement of objections and address the arguments on the main petition and to grant an order of stay of operation of possession notice dated 31.08.2019 as per Annexure-N until disposal of S.A.No.523/2019 by the Debts Recovery Tribunal-I, Bengaluru, on merits.
2. The respondent issued Symbolic Possession Notice dated 31.08.2019 to recover a sum of `9,17,98,297/-, which was subject matter of S.A.No.523/2019 before the Debts Recovery Tribunal-I, Bengaluru, (‘DRT’ for short) who, by the Order dated 25.10.2019, stayed the operation of the said Symbolic Possession Notice dated 31.08.2019, subject to condition that the petitioners shall pay a sum of `1,00,00,000/- on or before 11.11.2019 and another sum of `1,00,00,000/- on or before 25.11.2019 into the loan account with the respondent-Bank. The petitioners failed to comply with the said Order passed by the DRT, in time. When the matter was posted before the DRT on 13.11.2019, there was no representation for the applicants/borrowers/ petitioners herein. When the matter was called out for the third time, counsel for the applicants handed over demand draft for `62 lakhs as payment, whereas `1 crore was payable on or before 11.11.2019 and sought time for full compliance of the interim order. As the applicants had paid part amount, in the interest of justice and to avoid multiplicity of legal proceedings, applicants were granted time till 20.11.2019 for payment of `38 lakhs and further time upto 02.12.2019 for payment of `1 crore. It was ordered that, if the applicants fail to pay any of the said installments, the interim order will be automatically vacated. When the matter was posted on 05.12.2019, the respondent-bank filed objections.
3. The applicants/borrowers/petitioners herein filed memo for payment of `1.60 crores out of `2 crores and ultimately, the arguments was heard and the matter was adjourned to 20.01.2020. In the meanwhile, the learned Magistrate, in Crl.Misc.No.4593/2019, exercising powers under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, passed the Order dated 19.11.2019, appointing a Court Commissioner to take over the physical possession of the schedule property from the petitioners and to hand it over to the respondent bank within two months from the date of the order by preparing inventory and report the same to the Court, with the assistance of jurisdiction police, if necessary. Therefore, the petitioners are before this Court for the relief sought for.
4. I have heard the learned counsel for the parties to the lis.
5. Sri Vivek Holla, learned counsel for Sri Sanjay H. Sethiya, learned counsel for the petitioners contended that though the petitioners deposited `1.60 crores out of `2 crores in terms of the interim Order passed by the DRT, without providing an opportunity, the DRT posted the matter to 20.01.2020 and the Magistrate appointed Court Commissioner to take over the physical possession of the property within two months. Therefore, he sought to allow the writ petition.
6. Sri K.V.Lokesh, learned counsel for the respondent-Bank, contended that as on today, petitioners are due in a sum of `8 crores and have not complied the Order dated 25.10.2019 passed by the DRT. Therefore, DRT is justified in posting the matter for orders. He contended that when the petitioners have not complied the interim Order granted by the DRT, within the time stipulated, the learned Magistrate is justified in passing the Order dated 19.11.2019.
7. At this stage, learned counsel for the petitioner, on instructions, submits that, if an opportunity is given to file rejoinder before the DRT, the petitioners will deposit `50 lakhs within three weeks and another `50 lakhs within two weeks thereafter, i.e., totally `1 crore, on or before 20.01.2020. The submission is placed on record.
8. Learned Counsel for the respondent, though contended that the amount due is `8 crores and the petitioners have not paid the amount, the fact remains that the DRT granted interim order with a condition that the petitioners shall deposit `2 crores on or before 25.11.2019. It is also not in dispute that the petitioners have already complied the interim order, in-part, by depositing `1,60,00,000/-. Now the petitioners are undertaking to deposit `1 crore on or before 20.01.2020, i.e., `50 lakhs within three weeks from today and another `50 lakhs within two weeks thereafter.
9. In view of the above, the petitioners are permitted to file the rejoinder in S.A.No.523/2019 within a period of three weeks from today after depositing `50 lakhs. If rejoinder is filed, the DRT shall consider the same and pass appropriate orders, in accordance with law. In case, the petitioners fail to deposit `1 crore on or before 20.01.2020, it is open for the DRT and the respondent to proceed in accordance with law. Till disposal of the matter pending before the DRT, the impugned Order dated 19.11.2019 passed in Crl.Misc.No.4593/2019 and Symbolic Possession Notice dated 31.08.2019 are kept in abeyance.
Accordingly, the writ petition is disposed off.
Sd/- JUDGE kcm