w w w . L a w y e r S e r v i c e s . i n



Pooja Goplani v/s Simran Food Products & Others


Company & Directors' Information:- B. P. FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15311MP1994PTC032994

Company & Directors' Information:- INDIA FOOD COMPANY PRIVATE LIMITED [Active] CIN = U15133MH2006PTC161188

Company & Directors' Information:- SIMRAN CORPORATION PRIVATE LIMITED [Under Process of Striking Off] CIN = U31900PN2008PTC132345

Company & Directors' Information:- P P PRODUCTS PVT LTD [Active] CIN = U32305WB1991PTC051091

Company & Directors' Information:- S P P FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15412DL2004PTC128666

Company & Directors' Information:- K K PRODUCTS LIMITED [Active] CIN = U31300DL1991PLC045521

Company & Directors' Information:- K B PRODUCTS PRIVATE LIMITED [Active] CIN = U51909MH2007PTC169627

Company & Directors' Information:- J S FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15314OR1991PTC002964

Company & Directors' Information:- K G PRODUCTS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031201

Company & Directors' Information:- H R B FOOD PRODUCTS PVT LTD [Active] CIN = U15146WB1988PTC045281

Company & Directors' Information:- S S P PRODUCTS PRIVATE LIMITED [Active] CIN = U22110WB1974PTC210201

Company & Directors' Information:- SIMRAN FOOD PRIVATE LIMITED [Active] CIN = U15311UP1998PTC023298

Company & Directors' Information:- M L B PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC040990

Company & Directors' Information:- V D FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15400DL2012PTC231717

Company & Directors' Information:- O. S. FOOD PRIVATE LIMITED [Active] CIN = U15119DL2006PTC152903

Company & Directors' Information:- M M PRODUCTS LIMITED [Strike Off] CIN = U28994DL1992PLC050955

Company & Directors' Information:- M P K PRODUCTS PVT LTD [Active] CIN = U26919AS1994PTC004183

Company & Directors' Information:- P R FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC030483

Company & Directors' Information:- G K PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043260

Company & Directors' Information:- S S FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15310MH2003PTC142530

Company & Directors' Information:- B K FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15312OR1996PTC004541

Company & Directors' Information:- N R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51109AS1998PTC005561

Company & Directors' Information:- C L PRODUCTS INDIA LIMITED [Active] CIN = U51909DL2002PLC116975

Company & Directors' Information:- K. S. A. PRODUCTS PRIVATE LIMITED [Active] CIN = U51220PB2014PTC039023

Company & Directors' Information:- O H P FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U52205DL1999PTC100269

Company & Directors' Information:- K V FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15122DL2007PTC162739

Company & Directors' Information:- K. C. FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15431JK1982PTC000554

Company & Directors' Information:- G I S FOOD PRIVATE LIMITED [Active] CIN = U15412DL2002PTC117761

Company & Directors' Information:- K I C FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15316DL1979PTC009757

Company & Directors' Information:- D. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U52320DL2011PTC213508

Company & Directors' Information:- T F FOOD PRIVATE LIMITED [Active] CIN = U15122MH2012PTC232222

Company & Directors' Information:- R B FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15313DL2010PTC202753

Company & Directors' Information:- R K B FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15490KL2013PTC033500

Company & Directors' Information:- R S PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036603

Company & Directors' Information:- R R PRODUCTS PRIVATE LIMITED [Active] CIN = U24249HR1999PTC034291

Company & Directors' Information:- I G PRODUCTS PRIVATE LIMITED [Active] CIN = U74999WB2012PTC183503

Company & Directors' Information:- S K G FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15419UP1991PTC013771

Company & Directors' Information:- J S R PRODUCTS PRIVATE LIMITED [Active] CIN = U31908DL2007PTC170841

Company & Directors' Information:- C F C PRODUCTS PRIVATE LIMITED [Active] CIN = U28129DL1998PTC095531

Company & Directors' Information:- B H FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15134DL1997PTC084273

Company & Directors' Information:- N S FOOD PRODUCTS PVT LTD [Strike Off] CIN = U15412WB1992PTC055591

Company & Directors' Information:- M S PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055125

Company & Directors' Information:- B R PRODUCTS PRIVATE LIMITED [Active] CIN = U31909DL1999PTC100727

Company & Directors' Information:- S P B PRODUCTS LIMITED [Active] CIN = U51909DL1996PLC082631

Company & Directors' Information:- H N FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15146UP1990PTC011540

Company & Directors' Information:- V K FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15412UP1988PTC010023

Company & Directors' Information:- G K D PRODUCTS PRIVATE LIMITED [Active] CIN = U15431WB1998PTC086840

Company & Directors' Information:- M B R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17111WB1993PTC060806

Company & Directors' Information:- P D PRODUCTS PRIVATE LIMITED [Active] CIN = U23201DL2000PTC108462

Company & Directors' Information:- S K M PRODUCTS PRIVATE LIMITED [Active] CIN = U18101DL1998PTC093415

Company & Directors' Information:- H R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1978PTC009183

Company & Directors' Information:- V S PRODUCTS PRIVATE LIMITED [Active] CIN = U36900DL2008PTC185445

Company & Directors' Information:- H K PRODUCTS LIMITED [Active] CIN = U51900GJ2015PLC085457

Company & Directors' Information:- S R K PRODUCTS PRIVATE LIMITED [Active] CIN = U51221KA1989PTC010032

Company & Directors' Information:- G M PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC044687

Company & Directors' Information:- V T N PRODUCTS PVT LTD [Active] CIN = U51109WB1996PTC080094

Company & Directors' Information:- B M FOOD PRODUCTS PVT LTD [Strike Off] CIN = U15419WB1993PTC060386

Company & Directors' Information:- I K FOOD PRODUCTS PVT LTD [Strike Off] CIN = U15412WB1991PTC051852

Company & Directors' Information:- S S V FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15499AP1982PTC003547

Company & Directors' Information:- P L FOOD PRIVATE LIMITED [Active] CIN = U74899DL1985PTC021305

Company & Directors' Information:- W S T Q PRODUCTS PRIVATE LIMITED [Active] CIN = U31300DL1999PTC102655

Company & Directors' Information:- J M K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24246OR2005PTC008446

Company & Directors' Information:- S Q P FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15100MH2003PTC139217

Company & Directors' Information:- F S FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15311MH2000PTC126031

Company & Directors' Information:- Z K FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15400MH2010PTC209818

Company & Directors' Information:- G S T PRODUCTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U31909TN2006PTC059575

Company & Directors' Information:- M B S FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U01112WB2003PTC096375

Company & Directors' Information:- S M P PRODUCTS PRIVATE LIMITED [Active] CIN = U25200DL2009PTC190965

Company & Directors' Information:- N D FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15131DL2002PTC115754

Company & Directors' Information:- S N S PRODUCTS PRIVATE LIMITED [Active] CIN = U15490DL2005PTC142749

Company & Directors' Information:- U B PRODUCTS PRIVATE LIMITED [Active] CIN = U51224DL2002PTC116457

Company & Directors' Information:- A AND A PRODUCTS PRIVATE LIMITED [Active] CIN = U21098MP2004PTC017128

Company & Directors' Information:- V J PRODUCTS PRIVATE LIMITED [Active] CIN = U36900GJ2011PTC065252

Company & Directors' Information:- S AND A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51311DL1991PTC042938

Company & Directors' Information:- S AND G PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014843

Company & Directors' Information:- B P PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24241WB1999PTC089499

Company & Directors' Information:- C K M FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909KL1998PTC012358

Company & Directors' Information:- D AND P PRODUCTS LIMITED [Amalgamated] CIN = U99999MH1951PTC008422

Company & Directors' Information:- S D H PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U55204KA2006PTC040734

Company & Directors' Information:- V M PRODUCTS PRIVATE LIMITED [Active] CIN = U24100DL2014PTC266679

Company & Directors' Information:- E C A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U27209TN1987PTC014022

Company & Directors' Information:- G S C FOOD PRODUCTS PVT LTD [Strike Off] CIN = U15316WB1985PTC038398

Company & Directors' Information:- A K G FOOD PRODUCTS PVT LTD [Under Liquidation] CIN = U15412WB1990PTC049789

Company & Directors' Information:- J M D FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15419DL1998PTC097578

Company & Directors' Information:- G S PRODUCTS LIMITED [Strike Off] CIN = U25191UP1989PLC010483

Company & Directors' Information:- L K FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15200TG2016PTC103411

Company & Directors' Information:- SIMRAN PVT LTD [Strike Off] CIN = U33121CH1975PTC003613

Company & Directors' Information:- FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15431JK1966PTC000304

Company & Directors' Information:- A R K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24231UP1978PTC004606

Company & Directors' Information:- S. M. PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17299DL1966PTC004634

Company & Directors' Information:- R R FOOD PRODUCTS PRIVATE LIMITED [Active] CIN = U15490PN2015PTC154753

Company & Directors' Information:- R K D FOOD PRIVATE LIMITED [Strike Off] CIN = U74999MH2014PTC253447

Company & Directors' Information:- R. M. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U74999MH2017PTC298120

Company & Directors' Information:- A N FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15400TG2013PTC091969

Company & Directors' Information:- S G L FOOD PRIVATE LIMITED [Strike Off] CIN = U74120UP2013PTC057688

Company & Directors' Information:- P & Q PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL2014PTC269162

Company & Directors' Information:- R V S K FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15490DL2012PTC245851

Company & Directors' Information:- K G Y FOOD PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U15400KA1984PTC005909

Company & Directors' Information:- H T PRODUCTS PVT LTD [Strike Off] CIN = U29266WB1981PTC033424

Company & Directors' Information:- PRODUCTS (INDIA) LTD [Strike Off] CIN = U31901WB1961PLC024991

Company & Directors' Information:- FOOD PRODUCTS (INDIA) PVT. LTD. [Strike Off] CIN = U15311HR1994PTC032356

Company & Directors' Information:- M PRODUCTS & CO PVT LTD [Strike Off] CIN = U51909WB1956PTC023215

Company & Directors' Information:- M K FOOD PRODUCTS PVT LTD [Strike Off] CIN = U15209DL1979PTC009924

    Appeal Dy. No. 411 of 2019

    Decided On, 04 March 2020

    At, Debts Recovery Appellate Tribunal at Allahabad

    By, THE HONOURABLE MR. JUSTICE R.S. KULHARI
    By, CHAIRPERSON

    For the Appellant: D.N. Awasthi, Advocate. For the Respondents: R1 & R2, R.K. Tiwari, R4 & R5, P.K. Srivastava, Advocate.



Judgment Text

JudgmentR.S. Kulhari, Chairperson—The present appeal has been preferred by the appellant under Section 18 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SARFAESI Act”) challenging the order dated 8.5.2019 passed by the Presiding Officer, DRT, Allahabad, whereby the auction held by the Bank was set aside.2. The respondent-Bank granted certain financial assistance to M/s Simran Food Products (respondent No. 1), which was secured by mortgage of some immovable properties belonging to the respondents/guarantors. The loan was not repaid in time, hence the Bank issued the demand notice dated 17.2.2018 under Section 13(2) of the SARFAESI Act and the symbolic possession of the property was taken on 20.4.2018 under Section 13(4) of the said Act. Thereafter, the sale notice was issued on 19.9.2018 and the property was sold in favour of the auction-purchaser (appellant herein) on 3.11.2018. After deposit of complete sale price, the sale certificate was issued on 4.2.2019 and the sale deed was also executed on 14.2.2019 in favour of the auction-purchaser and the possession was also handed over.3. The borrowers challenged the possession notice by filing the S.A. on 30.5.2018 and during the pendency of the S.A., the property was sold as stated above. The auction-purchaser filed an application for impleadment, which was allowed on 8.5.2019. However, at the same time, the S.A. was allowed and the sale was set aside on the ground that the symbolic possession was taken before expiry of 60 days from the issuance of demand notice. Thus, all the consequential proceedings were quashed and the Bank was directed to refund the amount to the auction-purchaser with interest as applicable on FDR, after taking possession of the property from the auction-purchaser. Being aggrieved by the said order, the present appeal has been filed by the auction-purchaser.4. Learned Counsel for the appellant submits that the demand notice was issued on 17.2.2018 and the symbolic possession was taken on 20.4.2018, so it was beyond 60 days. Though it was dispatched on 19.2.2018, but the dates of dispatch and receipt of notice are not relevant. Thus, the Tribunal has erred in computing the period of 60 days and consequently setting aside the sale.5. Learned Counsel contends that even if the sale is set aside on technical ground, the violation of mandatory rules is attributable to the Bank and there was no fault on the part of the auction-purchaser. The auction-purchaser has obtained housing loan from the respondent-Bank itself for depositing the remaining 75% of the sale price, on which the Bank is charging 8.75% interest with cumulative effect, whereas the Tribunal below has allowed the interest applicable on FDR, which is hardly 6% per annum as on today, therefore, the interest as applicable on the housing loan ought to have been allowed. It was further contended that the Tribunal below has not considered the expenses incurred by the auction-purchaser towards the stamp duty and the registration fee, which was Rs. 1,85,000/- plus Rs. 20,000/-. Such amount was also liable to be borne by the Bank or the borrowers. The auction-purchaser, after taking possession of the property, has paid arrears of the electricity charges and has also invested a huge amount in addition, alteration and renovation of the property. Thus, the appellant is entitled for all the charges incurred in the process in case of re-delivery of the possession of the property.6. Learned Counsel for the Bank contends that the reasonable rate of interest has been allowed by the Tribunal below. Thus, the appellant is neither entitled for any enhanced rate of interest nor for registration charges and other allied expenses, as the appellant is enjoying the possession of the property from the date of possession till date.7. Learned Counsel for the borrowers supported the judgment of the Tribunal below.8. I have considered the rival contentions of the learned Counsels for the parties and perused the record.9. There is no dispute on the point that the demand notice dated 17.2.2018 was dispatched on 19.2.2018 and the symbolic possession was taken on 20.4.2018. The contention of the borrowers was that it was received on 21.2.2018, but in any case, it was not received before 20.2.2018. As per proforma Appendix-IV of the Rules, 2002, the date of receipt of demand notice is relevant for calculating the period of 60 days given to the borrowers to deposit the amount before taking the symbolic possession. The copy of the possession notice, placed at page 100, also mentions that the borrowers were required to repay the amount within 60 days “from the date of receipt of notice dated 17.2.2018”. The month of February, 2018 being of 28 days, the possession was taken on 20.4.2018 by the Bank before expiry of 60 days from the date of receipt of the demand notice. Thus, the possession was not taken as per the mandatory provisions of the SARFAESI Act. Since the sale notice and the auction sale was conducted in furtherance of the said symbolic possession and not after taking the physical possession in compliance of the DM’s order, therefore, all the subsequent proceedings conducted on the basis of the defective possession notice were rightly set aside by the Tribunal below.10. However, it is pertinent to note that the judgment was passed on the same day, when the appellant was impleaded as party, so no opportunity was given to the appellant to pursue its case or to file the relevant document before the Tribunal below, but since there is no dispute on the execution of the sale deed and its expenses and also on the fact that the Bank had granted housing loan to the appellant, therefore, I deem it appropriate to decide the issues of interest and expenses at this appellate level without remanding the matter back to the Tribunal below.11. The sale is being set aside because of the lapses on the part of the Bank and there was no fault on the part of the auction-purchaser. In such a situation, the auction-purchaser is entitled for reasonable interest on the amount along with adequate compensation or the expenses incurred by him, of-course, taking into consideration the aspect of physical possession enjoyed by the appellant.12. In the instant case, the Bank is charging interest @ 8.75% with cumulative effect on the housing loan given to the appellant, therefore, it is in the fitness of the things that the Bank should also pay the interest on the deposited amount at the same rate, which is applicable in the housing loan account of the appellant.13. Further, the appellant has incurred an amount of Rs. 20,000/- as registration fee and Rs. 1,85,000/- as stamp duty, which was effectuated, as the appellant had purchased the property under the perception that there is no defect in the sale. Since the sale is being set aside for fault on the part of the Bank, therefore, the Bank has to bear these charges and the appellant is entitled for refund of the same.14. It was stressed upon the fact that the appellant has invested some amount in addition, alteration and renovation of the property, but the averment is not substantiated by any documentary evidence, therefore, no such amount can be determined.15. The appellant has also claimed some amount towards expenses of electricity bills as arrears, but the appellant has consumed the electricity and is also enjoying the possession, so he is not entitled for reimbursement of electricity bills and expenses of transfer of account in its name.16. In view of the aforesaid, the appeal is partly allowed in the manner that the respondent-Bank shall pay the inter

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est on the sale price to the appellant at the same rate, which is applicable on the housing loan granted to the appellant from the date of deposit till the date of payment. The Bank is also directed to pay a sum of Rs. 1,85,000/- plus Rs. 20,000/-, total Rs. 2,05,000/- within two months from today to the appellant, failing which the appellant shall be entitled for interest @ 8% per annum simple for the delayed period after expiry of two months.17. The Bank shall receive the possession of the property before payment to the appellant as aforesaid and is also free to first appropriate the amount in the housing loan account towards the outstanding due against the appellant.18. Parties are left to bear their costs of the present litigation.19. A copy of this judgment be forwarded to the parties as well as to the DRT concerned.Appeal partly allowed.
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