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J. B. PARDIWALA, PANKAJ MITHAL
Authorised Officer Karnataka Bank – Appellant
Versus
RMS Granites (P) Ltd. – Respondent
ORDER
1. Leave granted.
2. This appeal arises from the order passed by the High Court of Karnataka dated 19th January 2023 in Review Petition No. 521 of 2022 preferred by the original petitioners i.e. respondents herein by which the High Court disposed of the Review Petition holding as under:-
2. Learned counsel for the petitioner, while inviting the attention of this Court to affidavits of both the Directors of petitioner No.1- Company, submitted that they undertake to withdraw the challenge to the sale which has already been conducted by respondent No. 1. It is therefore, submitted that excess amount which has been released by the Bank by sale of property of petitioner amounting to Rs.1,11,90,354.32p. which is admittedly lying in deposit with the respondent-Bank be refunded to the petitioner.
3. Learned counsel for the respondent - Bank has opposed the submission made by the learned counsel for the petitioner.
4. We have considered the submissions made on both sides and have perused the record.
Interest on delayed payment is not a penalty but an equitable right, and should be calculated from the date of rejection of the writ petition.
The court established that an auction purchaser is entitled to interest on the auction amount when delayed refunds occur due to no fault of their own.
Auction Sale of Property – High Court cannot usurp appellate jurisdiction of DRAT.
The central legal point established in the judgment is the abuse of writ jurisdiction by the borrowers and the consequences of their actions on the auction-purchaser and the Recovery Officer, leading....
The court affirmed the petitioner's entitlement to reasonable interest over the deposited amount and considered the lack of fault in the non-execution of the sale certificate.
Borrower must be informed about date of auction of secured asset.
The auction purchaser is entitled to a refund of amounts paid along with interest due to violations in the auction process.
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