Back
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.Singh, Venkatesh Naik T.
V. Shobha, W/O. Sri N. Vasu – Appellant
Versus
Assets Reconstruction Bank Company (India) Limited – Respondent
ORDER :
VENKATESH NAIK T., J.
This writ petition is filed by the petitioner impugning the order dated 04.03.2015 passed by the Debt Recovery Appellate Tribunal(for short 'DRAT'), Chennai, on IA-339/2014 in AIR No(SA)-116/2014, directing the petitioner to deposit Rs.1,00,00,000/- before DRAT within four weeks i.e., on or before 01.04.2015, and to restore SA registered in IR No.825/2013 and permit the petitioner to proceed in the matter in accordance with law.
2. The brief facts of the petitioner's case is that:
Late. S. Venkataswamy, father of the petitioner was a famous Musician and physically handicapped. Considering his service, the Government of Karnataka had granted 5 acres of land bearing Sy.No.262(old Survey No.154), vide order dated 23.07.1981 by the Deputy Commissioner, Bengaluru District, at S. Bingipura village, Jigani Hobli, Anekal Taluk, Bangalore District.
3. On 09.08.1998, Sri. Venkataswamy stood as guarantor(for short 'Guarantor') for the loan borrowed by one M/s. Cold Extrusion Private Limited(for short 'borrower') and accordingly deposited his title deeds in favour of the Karnataka Bank Limited including 14 other documents. In the year 2004, M/s. Karnataka Bank Limited,
The Tribunal has the authority to condone delays in SARFAESI Act proceedings under Section 5 of the Limitation Act, with emphasis on the necessity of timely action by mortgagors.
The 45-day limitation period under Section 17 of the SARFAESI Act is mandatory and cannot be condoned by the DRT due to lack of inherent power.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The DRT must consider the Limitation Act's provisions regarding the condonation of delay in SARFAESI applications, ensuring just consideration of delay reasons.
Compliance with statutory notice requirements is imperative in mortgage auctions; failures may invalidate the sale, preserving the mortgagor's right of redemption until formal sale registration.
The court established that the right of redemption under the SARFAESI Act is extinguished upon the issuance of a sale certificate, and timely challenge to bank actions is essential.
The court reinforced that compliance with statutory notice requirements and fair valuation is essential in property auctions under the SARFAESI Act to protect borrower rights.
The main legal point established in the judgment is that the right of redemption of the mortgaged property exists until the date of publication of notice for public auction, and the failure to exerci....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
