STANDARD CHARTERED BANK versus DHARMINDER BHOHI AND OTHERS

STANDARD CHARTERED BANK versus DHARMINDER BHOHI AND OTHERS

DRAT has no jurisdiction to grant general liberty to the auction purchaser to initiate action against the bank for any omission as such grant exceeds the limited statutory powers conferred; tribunals must act promptly and within the scope defined by SARFAESI and RDB Acts; delay and routine adjournments undermine the legislative object of speedy disposal, and the observation granting liberty to the auction purchaser is deleted.

Parties
Appellant: Standard Chartered Bank; Respondent No. 1: Dharminder Bhohi; Respondent No. 2: Unitech (developer); Respondent No. 3: Auction Purchaser (Respondent no. 3)
Jurisdiction
India
Judgment Date
13 September 2013
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Order Dated 16.07.2010 in Writ Petition (c) No. 4694 of 2010
Outcome
Appeal partly allowed
Legal Topics
Delay in Disposal by DRT and DRAT, Adjournment Procedures, Jurisdiction and Powers of Drt/drat, SARFAESI Act, RDB Act
Banking Law Debt Recovery Financial Assets Tribunal Procedure Delay in Disposal by DRT and DRAT Adjournment Procedures Jurisdiction and Powers of Drt/drat SARFAESI Act +1 more

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Parties

Standard Chartered Bank

Appellant

Dharminder Bhohi

Respondent No. 1

Unitech (developer)

Respondent No. 2

Auction Purchaser (Respondent no. 3)

Respondent No. 3

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Order Dated 16.07.2010 in Writ Petition (c) No. 4694 of 2010

Legal Issues

  1. 1 Whether DRAT can grant 'liberty to initiate any action against the bank' to the auction purchaser
  2. 2 Extent of powers and jurisdiction of DRT/DRAT under SARFAESI Act and RDB Act
  3. 3 Object and procedure of SARFAESI Act and RDB Act

Ratio Decidendi

DRAT has no jurisdiction to grant general liberty to the auction purchaser to initiate action against the bank for any omission as such grant exceeds the limited statutory powers conferred; tribunals must act promptly and within the scope defined by SARFAESI and RDB Acts; delay and routine adjournments undermine the legislative object of speedy disposal, and the observation granting liberty to the auction purchaser is deleted.

Court Disposition

Appeal partly allowed

Orders

  • Observation 'liberty is also given to the auction purchaser to file action against the bank for any omission committed by it' is deleted.
  • Judgment of High Court declining to interfere with grant of liberty by DRAT is set aside.