The Allahabad High Court on Monday has stayed the Debt Recovery Appellate Tribunal Prayagraj order of the auction of Mount Litera Zee School Jhunsi, affiliated to the CBSE, which was due to be held on Tuesday.
A single-judge bench of Justice Rajiv Joshi passed this order while hearing a Writ Petition filed by M/S Shiksha Education Trust.
“In pursuance of the direction of the appellate authority, the Tribunal below has directed to prepone the matter for March 4, 2021 and decide the same on the next date and even if not possible, the case be decided within 7 days thereafter positively”, the Court said.
The Counsel for the Petitioner submitted that before the Tribunal, March 17, 2021 is the date fixed and March 16, 2021 is fixed for auction of the properties belonging to the Petitioner Trust.
Senior Advocate Shailendra argued the Petition. They say that the school is being auctioned by the Trust by the order of Bank of India, Lohatiya Branch, Varanasi.
It is further contended that the Petitioner is ready to pay entire outstanding amount of loan which is more than Rs 6.16 crore, out of which the Petitioner has deposited Rs 95,00,000 and Rs 40,00,000 on two dates.
The petition demanded the cancellation of the order of DRAT on February 22, 2021 and the order of the authorized officer of the bank on February 06, 2021.
It is next contended that since the proceedings is pending before the Tribunal, there is no justification for holding any auction during the pendency of the said case.
In the fact circumstances of the case, the Tribunal is directed to conclude the hearing of the case if possible on March 17, 2021 and in case the Tribunal is not able to conclude the hearing on the date fixed, the Tribunal shall proceed with case on day to day basis.
“The auction which is scheduled to be held on March 16, 2021 shall remain stayed till the case is finally decided by Debts Recovery Appellate Tribunal, Allahabad”, the Court ordered.
The Petitioner has filed the Petition seeking following reliefs:
” A. Issue writ, order or direction in the nature of certiorari calling for the records and quashing the impugned order dated February 22, 2021 passed by the Debt Recovery Appellate Tribunal, Allahabad in Appeal (Siksha Education Trust Vs. Bank of India);
B. Issue writ, order or direction in the nature of certiorari calling for the records and quashing the impugned order/notice dated February 06, 2021 issued by the Authorized Officer, Bank of India, Lohatiya Branch, Varanasi informing the petitioner regarding auction proceedings scheduled to be held on March 16, 2021;
C. Issue a writ order or direction in the nature of mandamus restraining the respondent bank authorities from conducting the auction proceedings scheduled to be held on March 16, 2021 by the respondent bank and further to facilitate the Petitioner to provide sufficient time for depositing the remaining loan amount;
D. Issue a writ, order or direction in the nature of mandamus commanding and directing the respondent authorities of bank as we as administration to release the educational institution, in dispute, so that studies of the students could be completed, practical and theory examination of CBSE may be conducted smoothly and further the school management may be provided facility to conduct the examination of other classes within time without any hindrance from the bank or police authorities; E. Issue any other writ, order or direction, which this Apex Court may deem fit and proper in the circumstances and facts of the case.”
The Court has disposed of the Petition, ordering the appeal and stopping the auction.