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P. KRISHNA BHAT
P Balaji Babu – Appellant
Versus
State Bank Of India – Respondent
ORDER
1. Calling in question the action of respondent No.1 in forfeiting a sum of Rs.24.10 lakhs deposited by him, petitioner is seeking direction to refund the same with interest thereon at 18% p.a., in this writ petition.
2. It is the case of the petitioner that one Sri.Jignesh N. Patel was the owner of immovable property bearing No.9/1, Old No.5, Khatha No.30/A of Nayandahalli, Mysore Road, Bengaluru. He obtained loan from respondent No.1-State Bank of Mysore (which has now been merged with State Bank of India) for his business purposes and by way of security he created mortgage on the aforementioned property at Nayandahalli, Mysore Road, Bengaluru. The loan having remained outstanding, respondent No.1 initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') and took over possession of the mortgaged property. The property was brought to sale for the recovery of outstanding loan and respondent No.1 issued a newspaper publication dated 15.10.2010 (as per Annexure- A). The petitioner having noticed the same, deposited the EMD of Rs.5,63,500/- in terms of Annexure-A and submitted his
The court emphasized the duty to disclose material facts in sale notifications and the principle of doing justice by promoting honesty and good faith.
Point of Law : Rule 8 of the Security Interest (Enforcement) Rules, 2002 provides for the manner of holding sale of immovable secured assets.
Forfeiture of 25% bid amount under SARFAESI Rules 9(5) is mandatory on default, unaffected by higher subsequent sale or absence of loss; equity cannot override statutory provision. (28 words)
The main legal point established in the judgment is that the Bank's actions must adhere to the statutory provisions and be fair and transparent, especially in the context of property auctions under t....
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 duty of the bank to disclose encumbrances and material defects in the title of the auctioned property, as mandated by Rule 8(6)(f) of the Security Interest (Enforcement) Rules, 2002, and the requ....
The duty of the authorized officer to disclose material defects in the property's title overrides the defense of selling the property 'as is where is'. However, after a change in the fundamental scen....
A petitioner who has successfully participated in an auction sale conducted by a Bank under the SARFAESI Act, 2002 is entitled to refund of the entire money with interest if there has been a misrepre....
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