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A. A. SAYED, MADHAV J. JAMDAR
Prateek Pradeep Agarwal – Appellant
Versus
Union of India Through Department of Financial Services, Ministry of Finance – Respondent
JUDGMENT :
Madhav J. Jamdar, J.
The Petitioner is the owner of Heritage Bungalow, Mittal Grandeur, Junction of Khatau Road and Captain Prakash Rehe Marg, C.S. No. 85, Colaba Division, Street No. 25, Cuffe Parade, Mumbai-400030 (hereinafter referred to as “the said property”). The Petitioner is also a co-borrower. The Petitioner, Respondent No. 4 and Respondent No. 5 availed financial assistance of aggregate amount of Rs. 111,15,22,899/- (Rs. One Hundred Eleven Crores Fifteen Lakhs Twenty Two Thousand Eight Hundred Ninety-Nine) from Respondent No. 2 by five different loans granted on various dates. The said property was mortgaged with Respondent No. 2 as security towards said loan. The Respondent No. 2 sold the said property to Respondent No. 6 by private treaty under Rule 8(5) of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as “the said Rules”). The said Rules are made by the Central Government in exercise of the powers conferred by sub-Section 1 and Clause (b) of sub-Section 2 of Section 38 read with sub-Sections 4, 10 and 12 of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinaf
Court ruled that non-compliance with SARFAESI rules voided sale; observed that the rights of borrowers can be waived through their conduct and failure to assert them timely.
Secured creditors must adhere to proper notice and valuation requirements per the SARFAESI Act, as failure to do so invalidates asset sales.
The auction sale of secured assets was invalid due to violations of statutory procedures, including failure to obtain separate valuations and selling below the reserve price.
Point of Law - Rule 15 of Schedule II Part I of the Income Tax Act, 1961, in the first place it will have to be stated that a reading of the said Rule does not in any way conflict with either Section....
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