Hon’ble Apex Court Stayed : E-Auction [DRT] Not Functioning In The State Of Bihar

The Division Bench of the Hon’ble Apex Court, comprising Justices D.Y. Chandrachud and Justice Suryakant in the case of Chandan Kumar Vs. State of Bihar & Ors has stayed an e-auction in Bihar after noting that DRT is not functional in the State of Bihar.

The Counsel on the behalf of the petitioner has submitted that the Division Bench of the High Court had given the option to the petitioner that if the settlement does not fructify, the petitioner would be at liberty to avail of the remedy before the Debt Recovery Tribunal. Counsel submits that the Debt Recovery Tribunal is not functional in the State of Bihar, as a result of which the petitioner has been left without any remedy.

The Court considered the facts of the case and instructed the Respondent to stay the auction process till the next date of hearing and directed the petitioner to deposit an amount of Rupees 1crore with the SBI Stressed Assets Management Branch (respondent) before 14^th February (Monday), 2022, and a further amount of Rupees 75 lakh on or before 14^th March (Monday), 2022.

The Court made emphasis on the fact that the Debt Recovery Tribunal is not functional in the State of Bihar on which the Court passed a conditional relief to the petitioner by ordering the Respondent to stay the e-auction till the next date of listing.

The Court posted the matter on 21^st March (Monday), 2022 for next hearing.

SLP(C) 1730/2022

ITEM NO.13 Court 4 (Video Conferencing) SECTION XVI

S U P R E M E C O U R T O F I N D I A

RECORD OF PROCEEDINGS

Petition(s) for Special Leave to Appeal (C) No.1730/2022 (Arising out of impugned final judgment and order dated 30-11-2021 in CWJC No.16090/2021 passed by the High Court of Judicature at Patna)

CHANDAN KUMAR………………………. Petitioner(s)

VERSUS

THE STATE OF BIHAR & ORS………………………… Respondent(s)

(With appln. (s) for and I.R. and IA No.16798/2022-EXEMPTION FROM FILING O.T. and IA No.16796/2022-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES)

Date : 11-02-2022 This petition was called on for hearing today.

CORAM : HON'BLE DR. JUSTICE D.Y. CHANDRACHUD

HON'BLE MR. JUSTICE SURYA KANT

For Petitioner(s) Mr. Shivam Singh, Adv.

Mr. Abhinav Singh, Adv.

Mr. Gopal Singh, AOR

For Respondent(s)

UPON hearing the counsel the Court made the following

O R D E R

Mr Shivam Singh, counsel appearing on behalf of the petitioner submitted that the Division Bench of the High Court by its impugned order granted time for settling the account with the respondent – Bank, and thereafter proceeded to dispose of the petition with the observation that if the settlement does not fructify, the petitioner would be at liberty to avail of the remedy before the Debt Recovery Tribunal. Counsel submits that the Debt Recovery Tribunal is not functional in the State of Bihar, as a result of which the petitioner has been left without any remedy. The petitioner had offered an amount of Rs 1.41 crores initially towards the OTS which was enhanced to Rs 1.75 crores after the decision of the High Court.
In the above situation, we direct that the petitioner shall deposit an amount of Rs1 crore with the SBI Stressed Assets Management Branch (Respondent No 5) on or before 14 February 2022 and a further amount of Rs 75 lakhs on or before 14 March 2022.
Conditional on the petitioner complying with the above directions, there shall be a stay of the e-auction till the next date of listing.
Issue notice, returnable on 21 March 2022.
Dasti, in addition, is permitted.
The first and second respondents may be served through the Standing Counsel for the State of Bihar, in addition.
List the Special Leave Petition on 21 March 2022.

(CHETAN KUMAR) (SAROJ KUMARI GAUR)

Court Master A.R. -- Cum -- P.S.

Hon’ble Apex Court Stayed : E-Auction [DRT] Not Functioning In The State Of Bihar

Hon’ble Apex Court Stayed : E-Auction [DRT] Not Functioning In The State Of Bihar