Supreme Court stays an e-auction process as DRT was not functional in Bihar

Supreme Court stays an e-auction process as DRT was not functional in Bihar

The Supreme Court stayed an e-auction process as DRT was not functional in Bihar.

Arguments 

Advocate Shivam Singh, appearing on behalf of the petitioner, contended 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. 

He further argued 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.

Decision 

The division bench of Justice D.Y. Chandrachud and Justice Surya Kant directed the petitioner to deposit an amount of Rs1 crore with the SBI Stressed Assets Management Branch on or before 14 February 2022 and a further amount of Rs 75 lakhs on or before 14 March 2022.

The court said that it is conditional on the petitioner complying with the above directions, there shall be a stay of the e-auction till the next date of listing.

Case title: Chandan Kumar v/s The State of Bihar & Ors. 

Citation: Petition(s) for Special Leave to Appeal (C) No.1730/2022

Click here to read the Order/Judgment

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