ST.MARY'S HOTEL(P) LTD.& ANR Vs. KOTTAYAM DIST.COOP.BANK LTD.& ORS.

SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS ANDENFORCEMENT OF SECURITY INTEREST ACT, 2002

Multi-State Cooperative Societies Act, 2002

Supreme Court of India (Division Bench (DB)- Two Judge)

Writ Petition (Civil), 367 of 2011, Judgment Date: Mar 10, 2015

                                                              NON-REPORTABLE

                IN THE SUPREME COURT OF INDIA
                 CIVIL ORIGINAL JURISDICTION

                WRIT PETITION (C) NO.367 OF 2011


    ST. MARY'S HOTEL (P) LTD. & ANR.                 ... PETITIONERS

                                 VS.

    KOTTAYAM DIST. COOP. BANK LTD. & ORS.            ... RESPONDENTS


                     J U D G M E N T

ANIL R. DAVE, J.

1.    At the time of hearing of this petition, it has  been  submitted  that
Petitioner No.1 has  already  filed  an  appeal  before  the  Debt  Recovery
Appellate Tribunal at Chennai (DRAT) and   the said appeal, being  AIR  (SA)
230/2011, is pending.  In the afore-stated appeal an interim order had  been
passed  whereby the petitioner had been directed to pay Rs.65 lakhs  (Rupees
sixty five lakhs) by way of  pre-deposit.   At  that  stage,  Writ  Petition
No.367/2011 had been filed in this Court.  In pursuance of an interim  order
passed by this Court, a sum of Rs.2 crores  (Rupees  two  Crores)  has  been
paid by the petitioners to the respondent-Bank and the said amount has  been
kept in a separate account by the respondent-Bank.

2.    As the petitioners have already paid more  than  Rs.65  lakhs  (Rupees
sixty five lakhs), we direct that the amount which has been deposited  in  a
separate account by the respondent-Bank, shall be appropriated  towards  the
dues of the petitioners.

3.    It would not be necessary for the petitioners to pay a further sum  of
Rs.65 lakhs as directed by the Tribunal.   The  Tribunal  shall  decide  the
appeal which is pending before it, preferably within three months  from  the
date of receipt of a copy of this order.   During  the  pendency  of  afore-
stated appeal before  the  DRAT,  no  coercive  steps  shall  be  taken  for
recovery of the amount  under  the  provisions  of  the  Securitization  and
Reconstruction of Financial Assets  and  Enforcement  of  Security  Interest
Act, 2002 (SARFAESI Act).

4.    The question of law with regard to the  SARFAESI  Act,  2002  and  the
Multi-State Cooperative Societies Act, 2002, is kept open.

5.    The Registry shall give intimation of this order to the Tribunal.


6.    The writ petition  and  I.A.12  (For  directions)  stand  disposed  of
accordingly.

                                                            ..............J.
                                                          [ANIL R. DAVE]

                                                            ..............J.
                                                         [KURIAN JOSEPH]
New Delhi;
10h March, 2015.

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