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B. V. NAGARATHNA, N. KOTISWAR SINGH
Sanjay Sharma – Appellant
Versus
Kotak Mahindra Bank Ltd. – Respondent
ORDER :
1. Leave granted.
2. Being aggrieved by the order dated 30.05.2016 passed by the Division Bench of the Delhi High Court in W.P. (C) No. 6881/2014, the appellant is before this Court.
3. For the sake of convenience, the parties herein may be referred to in terms of their status in the entire gamut of proceedings: the appellant herein is the auction-purchaser who was successful in the auction conducted by respondent No. 1-Kotak Mahindra Bank Ltd. (“respondent No. 1”) on 21.12.2010 inasmuch as the sale certificate has also been issued in favour of the appellant on 27.12.2010. Respondent No. 1 is the Bank to whom Champa Bhen Kundia is indebted as a borrower; respondent No. 2 is said to be the person who is in possession of the scheduled premises pursuant to an Agreement to sell and a General Power of Attorney; respondent Nos.3 to 8 have really no connection with the present dispute in question.
4. Briefly stated, the facts of this case are that the secured asset, in this case, is the piece and parcel of land (measuring 55.7 Sq. yards) and the building and the Basement of House property bearing no. 2/22, Old Rajinder Nagar, New Delhi-110018 (hereinafter referred to as “secured asset
Unregistered documents do not confer ownership of immovable property; valid title requires registration under the Transfer of Property Act.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
Procedural violations in auction processes under the SARFAESI Act invalidate proceedings, emphasizing the right of redemption and proper valuation of secured assets.
The auction sale of secured assets was invalid due to violations of statutory procedures, including failure to obtain separate valuations and selling below the reserve price.
(1) Auction sale of secured asset – Unless and until a clear 30 days' notice is given to borrower, no sale or transfer can be resorted to by a secured creditor. Secured creditor cannot effect sale or....
The SARFAESI Act mandates exhausting statutory remedies before seeking extraordinary relief under Article 226; procedural compliance is essential, and the auction process cannot be set aside absent s....
The court reinforced that compliance with statutory notice requirements and fair valuation is essential in property auctions under the SARFAESI Act to protect borrower rights.
No one can be permitted to get benefit of his own wrong and cannot be permitted to get benefit of a void transaction.
Mortgage - Auction sale of immovable property - Challenged - Auction sale of said Property conclusion of same in favour of Respondents. 3 and 3A and issuance of Sale Certificate are void and legally ....
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