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D. V. S. S. SOMAYAJULU, V. SRINIVAS
Rayan Pharma Limited – Appellant
Versus
State Bank of India – Respondent
ORDER :
1. With the consent of learned senior counsels appearing for the respective parties viz., Sri N. Subba Rao and Sri Damalapati Srinivas, both the writ petitions were taken up for hearing.
2. Sri N. Subba Rao, learned senior counsel argued the matter in detail in the lead case W.P.No.1373 of 2018. Learned counsel submits that the writ petitioners are questioning the orders passed by the Debt Recovery Appellate Tribunal, Kolkata, in Appeal No.77/2017/862, dated 15.12.2017. The said appeal was dismissed confirming the order passed by the Debt Recovery Tribunal, Visakhapatnam in S.A.No.84 of 2012, dated 08.04.2015. The 1st petitioner, according to the learned senior counsel is a company involved in pharmaceutical business. The issue involved in this Writ Petition is about the procedure followed by the 1st respondent Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “SARFAESI Act”). It is argued that the procedure stipulated in the Rules for effecting the sale of the property was not followed. The plant and the machinery in the factory were not properly auctioned. In the first instance property was also s
The court emphasized the importance of following the procedure under the SARFAESI Act for the sale of property and upheld the applicability of the limitation period.
Timely challenges against auction sales must comply with procedural timelines; the court emphasizes bona fide intent in litigation.
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
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....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
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 ....
It is mandatory for the Secured Creditor/Bank to effect personal service of the sale notice, apart from publication as provided under Rule 8 & 9 of the Security Interest (Enforcement) Rules, 2002.
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