Supreme Court grants relief after finding that Debt Recovery Tribunal is non-functional in Bihar

The Supreme Court recently stayed an e-auction process in a case from Bihar after noting that the the Debt Recovery Tribunal was not functional in the State [Chandan Kumar v. State of Bihar]..A Division Bench of Justices DY Chandrachud and Surya Kant stayed the auction process till the next date of hearing and directed the petitioner to deposit an amount of ₹1 crore with the SBI Stressed Assets Management Branch (respondent) before February 14, 2022, and a further amount of ₹75 lakh on or before March 14, 2022.This was after the Court was informed that the Debt Recovery Tribunal is not functional in Bihar."In the above situation, we direct that the petitioner shall deposit an amount of Rs1 crore with the SBI Stressed Assets Management Branch (Respondent No 5) on or before 14 February 2022 and a further amount of Rs 75 lakhs on or before 14 March 2022. 3 Conditional on the petitioner complying with the above directions, there shall be a stay of the e-auction till the next date of list," the order said. .The Court was hearing a matter where it was submitted that a Division Bench of the Patna High Court by its order had granted time for settling the account with the respondent–bank, and proceeded to dispose of the petition with the observation that if the settlement does not fructify the petitioner would be at liberty to "avail of the remedy before the Debt Recovery Tribunal"The counsel for petitioner, advocate Shivam Singh, informed the Court that the Debt Recovery Tribunal is not functional in Bihar, as a result of which the petitioner was left without any remedy. Further, it was submitted that the petitioner had offered an amount of Rs 1.41 crores initially towards the one time settlement that was enhanced to Rs 1.75 crores after the decision of the High Court.The Court noted the same in its order while staying the e-auction process and issuing notice was issued in the matter..The matter will be heard next on March 21. .[Read Order]

Supreme Court grants relief after finding that Debt Recovery Tribunal is non-functional in Bihar

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