TaxTMI 
TaxTMI 
2021 (2) TMI 1376
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....accorded credit facilities to such company which were secured, inter alia, by a mortgage or the like of an immovable property against which the bank proceeded under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. Upon the bank seeking to auction the property in favour of the respondent auction purchaser, the debtor company challenged the transaction by way of proceedings under Section 17 of the Act of 2002. On grounds that are not relevant for the present context, the relevant Debts Recovery Tribunal annulled the transaction. The concerned bank carried an appeal to the appropriate Debt Recovery Appellate Tribunal. 3. During the pendency of the proceedings before the DRAT, an opera....
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....the company. Notwithstanding the judgment, it does not appear that the right of an erstwhile director as director or the right of a shareholder of a corporate debtor who continues to be a shareholder is jeopardized to the extent that an erstwhile director or a shareholder of a corporate debtor cannot espouse his cause qua the company by seeking to right a perceived wrong. There is no doubt that the Writ Court will be extremely circumspect in entertaining a plea by a director or shareholder of a corporate debtor, but the petition will be maintainable if brought against a statutory authority. 6. Indeed, what the writ petitioner suggests in the present case is that the DRAT order impugned herein dated August 21, 2019 is wholly without jurisdi....
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.... to the extent of suggesting that a writ petition under Article 226 of the Constitution may not lie against an order passed by a DRAT, though a petition under Article 227 of the Constitution may be brought. It is too late in the day to suggest that a writ petition against a quasi-judicial authority will not lie under Article 226 of the Constitution and the grievance has to be carried only by way of a petition under Article 227 of the Constitution. It is the quality of the grievance that may decide whether a party invokes Article 226 of the Constitution or Article 227 thereof against a quasi-judicial body. A quasi-judicial body, particularly a statutory body which is not a Court in the sovereign system of Courts but may be a tribunal, will b....
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.... in the appeal before the DRAT. The bank suggests that the concerned property that the corporate debtor had specifically agreed to make over possession of, could not be robbed from the bank by a side-wind or by resorting to collusive proceedings under the Code of 2016. The bank also points out that it is the only secured creditor of corporate debtor, which has now gone into liquidation at the bank's suggestion. The Resolution Professional (RP) confirms such position. It is also submitted by the RP that at the behest of the bank the concerned immovable property was kept out of the assets of the company now in liquidation and there is no embargo on the bank otherwise proceeding against such asset. 10. For whatever it is worth, notwithsta....