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J. K. MAHESHWARI, ARAVIND KUMAR
Shaji V. P. – Appellant
Versus
K. T. Unnikrishnan – Respondent
| Table of Content |
|---|
| 1. dispute over property auction and settlement (Para 1 , 2) |
| 2. claim for refund of auction deposit (Para 3 , 4) |
| 3. acceptance of settlement agreement (Para 5) |
| 4. direction for refund with interest (Para 6) |
| 5. resolution of litigation via compromise (Para 7 , 8) |
ORDER :
1. The petitioners being the auction purchaser of the property (Sy no. 183/2, ad measuring 12.833 cents or 5.19 Ares, Ezhupunna Village, Cherthala Taluk, Alappuzha District), secured with the Respondent no. 2 - Bank, are aggrieved by the failure in handing hand over its possession despite issuance of the sale certificate. Whereas Respondent no. 1 is aggrieved by the issuance of sale certificate in favour of petitioners. Subsequently, litigation ensued, and the petitioners, having been unsuccessful in the preceding proceedings, have approached this Court in the present special leave petition.
2. During pendency, the private parties have settled their dispute and Interlocutory Application No. 4251 of 2025 has been filed seeking direction thereby attaching a copy of the Agreement of Compromise entered on 24.12.2024. The relevant portion of the agreement is reproduced as under:
The issuance of a sale certificate under the SARFAESI Act vests title in the purchaser, and there is no legal provision for refunding the sale money unless the sale is annulled by a tribunal or court....
Burden was on the petitioner to establish, on the basis of firm pleadings and cogent evidence that the respondent-Bank had actively concealed or misrepresented any material fact from the petitioner w....
Legal heirs can seek return of the auction deposit under SARFAESI Act provisions if proceedings are delayed.
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 main legal point established in the judgment is that the confirmation of sale by the secured creditor is essential, and in the absence of such confirmation, no default can be attributed to the bi....
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.
Strict compliance with CPC provisions is mandatory; court delays can justify extensions for deposit payment.
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