The Supreme Court has held that there was no occasion for the High Court to make an observation regarding prima facie merit, once the petition was dismissed on the ground of alternate remedy and has disposed of an SLP by deleting such an observation made by the Delhi High Court.

The Bench of Justice Vikram Nath and Justice Prasanna Bhalachandra Varale observed, “We are of the view that there was no occasion for the High Court to make such an observation regarding prima facie merit, once the petition was dismissed on the ground of alternate remedy…We accordingly, direct that the aforesaid observation shall stand deleted from the impugned order.”

AOR Purna Chandra Patnaik appeared for the Petitioner.

The Petitioner challenged the order passed by the Delhi High Court declining to entertain the writ petition on the ground that the Petitioner therein had an alternate remedy of approaching the Debts Recovery Appellate Tribunal.

The Court noted that while disposing of the matter, the High Court has observed in a line that the submissions advanced by the counsel for the petitioner therein prima facie stand merited. The observation made by the High Court was troubling the Petitioner in the present Special Leave Petition.

The High Court had observed, “Concededly, the petitioner has a remedy of statutory appeal before the learned Debts Recovery Appellate Tribunal and therefore, this Court does not consider it apposite to entertain the present petition. Mr. Mehra, the learned senior counsel appearing for the petitioner submits the petitioner’s securitisation application is pending consideration before the Debts Recovery Tribunal and thus, the findings in the order dated 12.09.2023 cannot be considered as final. Prima facie, the aforesaid contentions are merited. However, since this court is not entertaining this petition, it is not necessary to examine the same. Needless to state that the same will be considered by the learned Debts Recovery Tribunal.”

The petitioner, who is an auction purchaser, submitted that his case may be prejudiced before the Debt Recovery Appellate Tribunal and the Debt Recovery Tribunal.

Accordingly, the Court deleted the said observation and disposed of the Special Leave Petition.

Cause Title: Satyanarayana Raju Datla v. Mannem Lokanadha Raju & Ors.

Appearances:

Petitioner: AOR Purna Chandra Patnaik, Advocates Pravin Kumar Kashyap and Hemant Mishra.

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