Restoration of securitisation application allowed where anticipated settlement failed, and Tribunal retained power to decide merits.
Withdrawal of a securitisation application on the basis of an anticipated settlement does not, by itself, deprive the Tribunal of power to restore the matter and decide it on merits when the settlement fails to materialise. The High Court held that subsequent developments may affect the relief ultimately granted, but they do not extinguish the grievance already brought before the Tribunal. The refusal to restore the application was therefore unjustified, and the Tribunal was directed to hear and decide the securitisation application in accordance with law.
Issues: Whether the Tribunal was justified in refusing restoration of the securitisation application after its withdrawal, and whether subsequent developments could deprive the Tribunal of the power to hear the matter on merits.
Analysis: The petition under Article 226 challenged the order rejecting restoration of the securitisation application. The securitisation application had originally been filed under Section 17 of the SARFAESI Act, and the Tribunal had dismissed it as withdrawn when counsel stated that the matter had been settled. The Court noted that later the petitioner sought restoration after the expected settlement did not materialise. It further noted that while an alternative statutory remedy under Section 18 of the SARFAESI Act existed, the writ petition need not be rejected on that ground in the facts of the case. The Court held that subsequent developments may affect the ultimate relief, but they do not by themselves extinguish the adjudicating authority's power to decide the grievance already brought before it.
Conclusion: The refusal to restore the securitisation application was held unjustified, and the matter was directed to be heard and decided by the Tribunal on its own merits.
Final Conclusion: The writ petition succeeded, the impugned order was set aside, and the Tribunal was required to proceed with the securitisation application in accordance with law.
Ratio Decidendi: Withdrawal of a securitisation application on the basis of an anticipated settlement does not, by itself, denude the Tribunal of jurisdiction to restore and decide the matter on merits when the settlement fails to materialise.
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