In a recent decision, the Delhi High Court turned down a request by M/S Saraswati Eduvision Pvt Ltd against Piramal Capital and Housing Finance Limited. The case is about a disputed property sale and the court's refusal to give temporary help to Saraswati Eduvision.
Saraswati Eduvision, along with other co-borrowers, took a housing loan of over ₹7.5 crore from Piramal Capital, using a property in New Delhi as security. Unfortunately, they failed to make payments, leading to their loan being labeled as a Non-Performing Asset (NPA) in August 2019.
"Due to repeated defaults, their loan account was classified as a Non-Performing Asset on 01.08.2019."
After the missed payments, Piramal Capital sent a demand notice followed by a notice to take control of the property. Despite legal battles, including a pause on a previous auction attempt, the property was eventually put up for auction again in March 2023.
"Piramal Capital issued a Sale Notice dated 10.03.2023, scheduling the auction of the mortgaged property for 28.03.2023."
Saraswati Eduvision tried to stop the auction through the Debts Recovery Tribunal (DRT) and Debts Recovery Appellate Tribunal (DRAT), but both refused to give temporary help. Saraswati Eduvision then went to the High Court, which also refused to get involved, highlighting that there are other legal options available.
"Saraswati Eduvision has an effective and efficacious alternative remedy available under the statutory framework."
Saraswati Eduvision argued that the auction was conducted unfairly and at a low price, but the court found no reason to get involved at this stage. The court stressed the importance of using all legal options before seeking a higher court's help.
"The learned counsel for Saraswati Eduvision would also raise serious objections to the valuation reports of the mortgaged property."
The court decided that Saraswati Eduvision should continue its appeal with the DRAT, as the main issues are still pending there. This decision shows the court's reluctance to step into ongoing legal processes.
"Accordingly, the present Writ Petition stands dismissed."
In summary, this judgment highlights the importance of following due legal processes and the limited scope of temporary help in complex financial disputes.
