{"id":147310,"date":"2009-01-29T00:00:00","date_gmt":"2009-01-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/lt-col-a-s-sabharwal-vs-punjab-state-industrial-on-29-january-2009"},"modified":"2016-06-14T00:45:26","modified_gmt":"2016-06-13T19:15:26","slug":"lt-col-a-s-sabharwal-vs-punjab-state-industrial-on-29-january-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/lt-col-a-s-sabharwal-vs-punjab-state-industrial-on-29-january-2009","title":{"rendered":"Lt.Col. A.S.Sabharwal vs Punjab State Industrial &#8230; on 29 January, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Lt.Col. A.S.Sabharwal vs Punjab State Industrial &#8230; on 29 January, 2009<\/div>\n<pre>            IN THE HIGH COURT OF PUNJAB AND HARYANA\n                          AT CHANDIGARH\n                                         C.R. No. 513 of 2009 (O&amp;M)\n                                         Date of Decision: 29.1.2009.\n\nLt.Col. A.S.Sabharwal\n                                                   ....Petitioner\n\n               Versus\n\nPunjab State Industrial Development Corporation,\nLtd and others\n                                                    ...Respondents\n\nCORAM : Hon'ble Mr. Justice Rajesh Bindal\n\nPresent:-      Mr. Rajiv Atma Ram, Sr. Advocate with\n               Ms. Deepika, Advocate\n               for the petitioner.\n\nRAJESH BINDAL J.\n\n                        ****\n<\/pre>\n<p>               The challenge in the present petition is to the order passed by the<br \/>\nlearned Court below in an application filed by the petitioner under Order 39<br \/>\nRules 1 and 2 CPC in a suit filed by him for declaration and mandatory<br \/>\ninjunction. The prayer in the application was that during the pendency of the suit,<br \/>\nthe respondent-PSIDC be restrained from selling the property.\n<\/p>\n<p>               Briefly the facts are that respondent No.2 Sumer International Ltd.,<br \/>\nwas the loanee of PSIDC. On account of default in payment of loan, property<br \/>\nwas put to auction. The petitioner was a successful bidder in the auction held on<br \/>\nNovember 25, 2002.         In fact this auction was held during pendency of an<br \/>\napplication filed by respondent No.2-loanee before the Board for Industrial and<br \/>\nFinancial Reconstruction ( for short &#8216;the BIFR&#8217;). Section 22 of Sick and Industrial<br \/>\nCompanies (Special Provisions) Act, 1985, (hereinafter referred to as the &#8216;SICA<br \/>\nAct&#8217;) specifically debars taking any coercive steps for recovery of loan during the<br \/>\npendency of an application filed before the BIFR under Section 16 of the SICA<br \/>\nAct. The petitioner at the time of auction had deposited a sum of Rs.2 lacs as<br \/>\nsecurity in order to participate in the auction proceedings. After the acceptance<br \/>\nof his bid the petitioner was required to deposit 25% of auction money of Rs.2<br \/>\ncrore. However, the amount was not deposited within the time prescribed but a<br \/>\nplea was sought to be taken that the corporation would require permission from<br \/>\nBIFR before the possession of property is handed over to the petitioner in terms<br \/>\nof provisions of Section 22 of the SICA Act. The permission was declined by the<br \/>\nBIFR.    Finally on September 30, 2004 that the application filed by respondent<br \/>\nNo.2 loanee was rejected by the BIFR as not maintainable. The loanee even<br \/>\nfailed before the Appellate Authority. Thereafter the petitioner filed a suit for<br \/>\ndeclaration and possession of the property on payment of the auction price.\n<\/p>\n<p> C.R. No.513 of 2009 (O&amp;M)                                     -2<\/p>\n<p>               Considering the aforesaid facts this Court is of the view that the<br \/>\npetitioner is not entitled to any interim injunction for sale of property by the<br \/>\ncorporation for recovery of loan due against respondent No.2-loanee. Section 22<br \/>\nof the SICA Act clearly debars the sale of property and not merely handing over<br \/>\nthe possession of the property to any prospective successful bidder in auction.<br \/>\nThe property of the loanee was sold by the PSIDC during the pendency of the<br \/>\napplication filed by him before the BIFR. The petitioner in the present case had<br \/>\nmerely participated in the auction by depositing of Rs.2 lacs. After acceptance<br \/>\nof bid on November 25, 2002, 25% of the offer price of Rs.2 crores was to be<br \/>\ndeposited within 15 days thereafter. The same was not deposited by the<br \/>\npetitioner.\n<\/p>\n<p>               Faced with the situation learned counsel for the petitioner submits<br \/>\nthat as the dispute is pending in the Court let any steps taken by the corporation<br \/>\nfor sale of the property be subject to the decision of the suit. Even this prayer of<br \/>\nthe learned counsel for the petitioner is well protected under Section 52 of the<br \/>\nTransfer of Property Act.\n<\/p>\n<p>               Accordingly, the present revision petition is dismissed. Any<br \/>\nobservation made in this order will not have any bearing on final disposal of the<br \/>\nsuit.<\/p>\n<pre>\n\n\n\n                                                 (RAJESH BINDAL)\n29.1.2009                                             JUDGE\nReema\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Lt.Col. A.S.Sabharwal vs Punjab State Industrial &#8230; on 29 January, 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.R. No. 513 of 2009 (O&amp;M) Date of Decision: 29.1.2009. Lt.Col. A.S.Sabharwal &#8230;.Petitioner Versus Punjab State Industrial Development Corporation, Ltd and others &#8230;Respondents CORAM : Hon&#8217;ble Mr. Justice Rajesh Bindal Present:- [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-147310","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lt.Col. 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