Delhi High Court - Orders
Mr Mukesh Gupta & Ors vs The Karur Vysya Bank Limited ... on 19 August, 2020
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
SINDHU KRISHNAKUMAR
19.08.2020 21:33
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 5433/2020 & CM APPLs. 19593-94/2020
MR MUKESH GUPTA & ORS. ..... Petitioners
Through: Ms. Meenakshi Arora, Senior
Advocate with Mr. Apoorv Agarwal,
Ms. Akanksha Sharma and Ms.
Rashmi, Advocates. (M:8420524375)
versus
THE KARUR VYSYA BANK LIMITED REPRESENTED BY
AUTHORISED REPRESENTATIVE
CHIEF MANAGER & ORS. ..... Respondents
Through: None.
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 19.08.2020
1. This hearing has been done by video conferencing.
2. The present petition has been filed by the Petitioners challenging the proceedings under the Securitization and the Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter, 'SARFAESI Act') initiated by the Karur Vysya Bank Limited (hereinafter, 'Bank') in respect of property bearing no. 2152, Shora Kothi, Ghanta Ghar, Sabzi Mandi, Delhi-110007.
3. The case of the Petitioners is that the Petitioners purchased the property from Respondent No.2 vide a registered sale deed dated 22nd January, 2018 in respect of all the three floors of the said property. However, the Bank has initiated the proceedings under the SARFAESI Act on the ground that the said property was mortgaged by the Respondent No.2 Signature Not Verified Digitally Signed By:PRATHIBA M SINGH Signing Date:19.08.2020 21:12 in respect of a loan, which was granted for a sum of Rs.21 lakhs on 3rd November, 2018.
4. It is the submission of Ms. Meenakshi Arora, ld. Senior Counsel for the Petitioners, that the registered sale deed in favour of the Petitioners being of 22nd January, 2018, the Respondent No.2 had no right in the property to submit the said property or its documents as a collateral in respect of any loan almost 11 months later. It is her submission that the inclusion of this property as collateral and initiation of the SARFAESI proceedings in respect of this property is completely untenable, inasmuch as the Bank would have done its due diligence and would have realised that this property was already sold by way of registered sale deeds.
5. Advance copy of this petition has been served to the Bank, however, none appears for the Bank. Issue notice to the Respondents including the Bank.
6. Till the next date of hearing, status quo shall be maintained as to title and possession in respect of the property in question. No coercive steps shall be taken either by the Bank or in the proceedings before the Debt Recovery Tribunal (DRT) against the Petitioners.
7. List on 19th October, 2020.
PRATHIBA M. SINGH, J.
AUGUST 19, 2020/dk/A Signature Not Verified Digitally Signed By:PRATHIBA M SINGH Signing Date:19.08.2020 21:12