2012 (12) TMI 160 - HC - Companies Law

Quashing Impugned notice u/s 13(4) of SARFAESI Act - admitted liability for the principal amount and interest - held that - Petitioners committed default in payment of dues even after he is granted flexible time schedule to carry out his commitment - benefit of this interim order shall not ensure to them and the respondents shall be at liberty to dispossess the petitioners forthwith - Dismissed as withdrawn - open to the petitioners to take recourse to the remedies available to them in accordance with law.

Summary

Issues:
1. Quashing of impugned notices under SARFAESI Act
2. Modification of order by Debts Recovery Tribunal
3. Compliance with court's order regarding deposit of instalments
4. Permission to withdraw petition with liberty to approach Debts Recovery Appellate Tribunal

Issue 1: Quashing of impugned notices under SARFAESI Act
The petitioners filed a petition under Articles 226/227 of the Constitution of India seeking to quash the notices issued by the respondent under Section 13(2) and 13(4) of the SARFAESI Act. The petitioners expressed willingness to deposit a substantial amount to clear the outstanding liability. The court issued an interim order directing the petitioners to deposit specific amounts within specified timelines to maintain possession of the property. However, the petitioners failed to comply with the order due to the inability to find a buyer for the mortgaged property. Consequently, the petition was dismissed as withdrawn, with the petitioners granted liberty to seek remedies through the Debts Recovery Appellate Tribunal or as per the law.

Issue 2: Modification of order by Debts Recovery Tribunal
The petition also sought modification of an order passed by the Debts Recovery Tribunal-II, Chandigarh. The court, in its interim order, allowed the petitioners to deposit specific amounts in instalments to clear the liability, maintaining possession of the property. However, due to the failure to comply with the order, the petition was ultimately dismissed as withdrawn, granting the petitioners the liberty to pursue remedies through the Debts Recovery Appellate Tribunal or as per legal provisions.

Issue 3: Compliance with court's order regarding deposit of instalments
Despite the petitioners' intention to deposit a significant sum to clear the liability, they could not find a buyer for the mortgaged property, leading to non-compliance with the court's order to deposit instalments within specified timelines. The court, considering the circumstances, allowed the petition to be withdrawn with the liberty for the petitioners to explore further legal options through the Debts Recovery Appellate Tribunal or other available remedies.

Issue 4: Permission to withdraw petition with liberty to approach Debts Recovery Appellate Tribunal
The petitioners requested to withdraw the petition with the liberty to approach the Debts Recovery Appellate Tribunal. The court granted the permission to withdraw the petition while allowing the petitioners to seek recourse to available legal remedies as per the law. The dismissal of the petition provided the petitioners with the opportunity to pursue their case through the appropriate legal channels, including the Debts Recovery Appellate Tribunal, if necessary.