Back
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.SINGH, VENKATESH NAIK T
Bank Of Baroda – Appellant
Versus
G.S. Srinivas Gupta Son Of G.N. Shankar Narayan – Respondent
ORDER :
(PER: HON'BLE MR. JUSTICE VENKATESH NAIK T)
WP No.36440 of 2014 and WP No.52283 of 2013
WP No.36440 of 2014 has been filed by the Bank of Baroda erstwhile (Vijaya Bank) to set aside the order dated 23.08.2013 passed by the Debt Recovery Appellate Tribunal, Chennai, (for short, 'the Tribunal') in MA No.138 of 2008 and to set aside the order dated 07.03.2008 passed by the Debt Recovery Tribunal, (for short 'DRT') Bengaluru in AOR No.2 of 2003 and thereby allow the Miscellaneous Appeal No.138 of 2008 on the files of the Debt Recovery Appellate Tribunal, Chennai.
2. Whereas, WP No.52283 of 2013 is filed by the petitioner, auction purchaser, A. Naveen Bhandary, to set aside the order dated 23.08.2013 passed by the Debt Recovery Appellate Tribunal, Chennai in Miscellaneous Appeal No.378 of 2010, wherein, the tribunal dismissed the appeal filed by the petitioner, which was filed challenging the order dated 07.03.2008 passed by the Debt Recovery Tribunal(for short 'DRT'), Bengaluru in AOR No.2 of 2003.
Brief facts of the case in W.P.No.36440/2014 and W.P.No.52283/2013 herein are as under:
3. The 6th/10th respondent, M/s. United Distilleries had availed a temporary overdraft facility to
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.
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 right of redemption is available to the mortgagor until the sale is complete by registration of sale, and the violation of statutory rules may entitle the borrower to redeem the property.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
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 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 ....
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
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
