LexM/S. OPTIEMUS INFRACOM LTD. ETC. versus M/S. ISHAN SYSTEMS PVT. LTD. & ANR.
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(2012] 6 S.C.R. 1089 M/S. OPTIEMUS INFRACOM LTD. ETC. v. M/S. ISHAN SYSTEMS P~ LTD. & ANR. (Civil Appeal No(s). 5696 of 2012 etc.) AUGUST 1, 2012 [ALTAMAS KABIR AND J. CHELAMESWAR, JJ.] CONSTITUTION OF INDJ/i., 1950: A B Art.226 - Writ petition before Allahabad High Court c against order of debt Recovery Tribunal Delhi - Maintainability of-:- Held: In the subsequent writ petition filed by the appellant the said High Court has held that it had no jurisdiction to entertain the writ petition and dismissed the same accordingly - Jurisdiction. D Art. 226- Writ petition challenging the order of Debt Recovery Tribunal by which the application challenging the auction of property was rejected- High Court found "no good ground to interfere with the order of the appellate authority~ however, it gave direction to Debt Recovery Tribunal to decide E the application and also restrained the auction purchaser for making any further transfer of the property - Held: It is true that the impugned order has more or less worked itself out, but the practice which was adopted by the High Court, is not only arbitrary, but also contrary to the concept of the principles F of natural justice - Since the writ petition was to be dismissed without issuing notice, it should have been dismissed without giving any further directions in the matter - If there was any intention on the part of the high court to protect the properties in question during the pendency of the matter before the G Debts Recovery Tribunal, the proper qourse of action would have been to issue notice, and, if necessary, pass interim orders and after hearing the parties to pass final orders in the 1089 H 1090 SUPREME COURT REPORTS [2012] 6 S.C.R. A matter - The impugned judgment to the extent it restrains the appellants from alienating or encumbering the property, is set aside - Natural Justice - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - s.17-A. 8 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5696 of 2012. From the Judgment & Order dated 14.2.2012 of the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. C 8409 of 2012. WITH C.A. No. 5697 of 2012 D Mukul Rohtagi, Nageshwar Rao, K.K. Venugopal, Ranjeet Kumar, Subramonium Prasad, Varun Tandon, Suresh Dobhar, Rahul Tyagi, Ruchi Kohli for the Appellant. Chetan Sharma, Sameer Vashisht, Kanika Singh, Ashok E Mathur for the Respondents. The Order of the Court was delivered ORDER F 1. Two Special Leave Petitions have been filed against the judgment and order dated 14th February, 2012, passed by the Allahabad High Court, in Civil Miscellaneous Writ Petition No.8409/2012. 2. The first Special Leave Petition has been filed by M/S. G OPTIEMUS INFRACOM LTD., being SLP(C) ...... cc 12128/12. the second Special Leave Petition has been filed by M/S. PHOENIX ARC PVT.LTD., being SLP(C) ...... CC 12468/12. 3. Delay condoned. H OPTIEMUS INFRACOM LTD. ETC. v. ISHAN 1091 SYSTEMS PVT. LTD. 4. Leave granted in both the Special Leave Petitions. A 5. Writ Petition No.8409 of 2012, was filed by the respondent, M/S. ISHAN SYSTEMS PVT.LTD.& ANR., against the judgment and order dated 11th April, 2011, whereunder the property of the respondent/judgment-debtor Co. was put to auction. An application had been filed by the respondent- company before the Debts Recovery Tribunal complaining of violation of the statutory rules which regulate the auction of property. Other grounds were also taken, but the same were rejected by the High Court. In fact, the High Court, after examining the records of the writ petition, had found no good C ground to interfere with the order of the Appellate Authority. Instead of stopping there, the High Court went on further to give various directions to the Debts Recovery Tribunal, to proceed and decide the application, which had been filed by the respondent No.1 /petitioner, being S.A.No. 714/2011. By another D direction the auction purchaser was restrained from making any further transfer of the property in question and any construction raised would abide by the orders to be passed in the pending application before the Debts Recovery Tribunal. With the aforesaid directions, the High Court disposed of the writ petition finally. B E 6. The said judgment and order of the High Court had been questioned on the ground that having found no ground to interfere
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