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SANJAY KUMAR, ALOK ARADHE
Delhi Development Authority – Appellant
Versus
Corporation Bank – Respondent
| Table of Content |
|---|
| 1. lease obligations and mortgage permissions. (Para 1 , 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 2. procedural aspects of auction and related notifications. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16) |
| 3. contentions of parties regarding legality of mortgage. (Para 18 , 19 , 20 , 21) |
| 4. legal framework governing auction procedures. (Para 22 , 23 , 24 , 25 , 26 , 27) |
| 5. application of doctrines like res judicata. (Para 28 , 29) |
| 6. principle of restitution and rights of auction purchaser. (Para 30 , 31) |
| 7. conclusion to quash previous orders and refund. (Para 32 , 33) |
JUDGMENT :
ALOK ARADHE, J.
1. This appeal emanates from an order dated 11.08.2014 passed in Writ Petition (C) No. 5005 of 2014 by which High Court of Delhi has dismissed the writ petition preferred by the appellant.
The present appeal brings before this Court a contest not merely of rights but of duties - the duty of the lessee to honour the covenants of the lease, the duty of a bank to exercise due diligence before advancing public money and the duty of an instrumentality of the state, as trustee of public property, to guard against encroachment upon its title. It also brings before us the plight of an Auction Purchaser who entere
The court established that an auction conducted in violation of lease terms is illegal, and that restitution principles mandate repayment to innocent parties affected by such illegality.
Auction sales conducted under the Recovery of Debts Due to Banks and Financial Institutions Act must not be disturbed without substantial evidence of irregularity; procedural compliance is paramount.
The judgment emphasizes the finality of sale transactions, the need to balance the interests of defaulters and creditors, and the importance of following the statutory provisions for challenging the ....
A bona fide purchaser at auction is protected, and a writ petition challenging the confirmation of sale is not maintainable if filed beyond the statutory period.
The statutory limitations under Rule 68B of the Income Tax Act are not applicable to recovery proceedings under the RDDB Act, affirming that such sales are valid and within legal parameters.
The court affirmed the validity of a mortgage auction, emphasizing banks' rights over secured properties despite challenges from subsequent purchasers and procedural compliance in auction processes.
(1) Auction sale of mortgaged property – Objective of recovery proceedings is not merely to complete sale but to realise maximum value of secured asset so as to balance interests of creditor and borr....
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