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U. DURGA PRASAD RAO, B. V. L. N. CHAKRAVARTHI
Tropical Coatings International Private Limited – Appellant
Versus
Authorized Officer & Anr. – Respondent
JUDGMENT
U. Durga Prasad Rao, J. - The challenge in this writ petition at the instance of petitioners / borrowers is the following order dated 24.09.2021 in S.A.No.227/2018 passed by the Presiding Officer, Debts Recovery Tribunal, Visakhapatnam (for short, the DRT, VSP'):
'Therefore, considering the facts and circumstances of the case and in view of the Not Press Memo filed by the applicant to settle the matter under OTS, the present SA No.227 of 2018 along with IA.972/2018 is dismissed as not pressed and the applicant is at liberty to approach the respondent bank for settlement of the loan account under OTS and the respondent bank may accept the OTS proposal in accordance with its guidelines to settle the accounts with respect to other properties except item No.1 of schedule mentioned property because it is sold to auction purchaser in e-auction conducted by the respondent bank on 1.12.2018. However, since the bank has conducted e-auction on 1.12.2018 wherein M/s. Heritage Foods Limited has become successful bidder in respect of item No.1 of the SA schedule property and in view of dismissal of SA.227/2018 and IA.972/2018 (stay petition), the respondent bank can take steps to registe
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
A secured creditor, acting as a trustee, must secure the best possible value for a mortgaged asset; mere intimation of a reduced reserve price to a borrower does not constitute the mandatory 'consent....
Point of Law - It is not for a litigant to decide what fact is material for adjudicating a case and what is not material. It is the obligation of a litigant to disclose all the facts of a case and le....
While expressing the aforesaid view, we are conscious that the powers conferred upon the High Court under Article 226 of the Constitution to issue to any person or authority, including in appropriate....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The entitlement for any benefit under the circulars issued by the RBI can be adjudicated by the concerned DRT, and a writ petition against a private financial institution under Article 226 of the Con....
The main legal point established in the judgment is that when an alternative remedy is available to challenge an order under the SARFAESI Act, the instant writ petition is not maintainable.
The main legal point established in the judgment is the interpretation of Rule 9(4) and 9(5) of the Security Interest (Enforcement) Rules, 2002, highlighting the requirement for the purchaser to pay ....
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