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DIPANKAR DATTA, MANMOHAN
GBJ Hotels Private Limited – Appellant
Versus
Sriharan Sripathmanathan – Respondent
ORDER :
1. GBJ Hotels Private Limited1[GBJ Hotels] is the petitioner in this special leave petition, which impugns an order dated 6th March 2025 passed by the High Court of Judicature at Madras2[High Court] on a writ petition3[Writ Petition No. 1001 of 2025] presented by the respondents 14[Sriharan Sriparthmanathan] and 25[Asiana Hotel Management Company PTE Limited].
2. Respondents 1 and 2 had received financial assistance provided by Edelweiss Finvest Limited. The debt was then assigned to Edelweiss Asset Reconstruction Company Limited, respondent no.36[Edelweiss ARCL]. Respondents 1 and 2 committed default in repayment of their dues. As borrowers, the respondents 1 and 2 owed approximately Rs. 135 crore to the Edelweiss ARCL as on date the impugned order was passed (recorded in paragraph no.4 thereof). In the writ petition, the respondents 1 and 2 had challenged an order of the relevant Debts Recovery Appellate Tribunal, whereby they were ordered to deposit 50% of the sum due, i.e., a little less than Rs.36 crore.
3. Pertinently, in pursuance of proceedings under the SARFAESI Act, 2002, an auction was conducted. Bid of GBJ Hotels for a sum of Rs.108 crore was accepted by Edelweiss
The court upheld the auction process under the SARFAESI Act, confirming the acceptance of the highest bid to protect creditor interests.
Points of Law : Only required the authorised officer of the bank under the SARFAESI Act to hand over the duly validated sale certificate to the auction purchaser with a copy forwarded to the register....
The judgment clarifies that under Section 13(8) of the SARFAESI Act, a borrower's right to redeem a secured asset remains until registration of the sale certificate and delivery of possession.
though existence of an alternative remedy is not an absolute bar to the maintainability of a writ petition under Article 226 of the Constitution, but a writ petition can be entertained in exceptional....
Though existence of an alternative remedy is not an absolute bar to the maintainability of a writ petition under Article 226 of the Constitution, but a writ petition can be entertained in exceptional....
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