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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.I.CHAGLA, FARHAN P.DUBASH
Prudent ARC Limited – Appellant
Versus
Liquidator, High Court, Bombay – Respondent
ORDER :
Farhan P. Dubash, J.
1. The present Writ Petition invokes the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, seeking issuance of a writ to quash and set aside the order dated 19th November 2025 (impugned order) passed by the Debts Recovery Appellate Tribunal, Mumbai (DRAT) in Regular Appeal No. 18 of 2024 and Miscellaneous Appeal No. 27 of 2024, and further seeking a direction to the Recovery Officer, Debts Recovery Tribunal–II, Mumbai (DRT) to conduct a fresh valuation of the properties and for the entire process of auction/sale to be conducted afresh.
FACTS IN BRIEF
2. For a proper appreciation of the controversy involved, the relevant facts may briefly be set out hereunder:
(i) The Petitioner is the assignee of the debt of Global HiTech Industries Limited, having acquired the same from the State Bank of India, JM Financial Asset Reconstruction Company Limited, Invent Asset Securitization and Reconstruction Private Limited, and ARCIL Limited. The Petitioner presently holds 75.61% of the total secured lending availed by the borrower against the security of the mortgaged and/or charged properties.
(ii) The above-referred banks and financi
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The central legal point established in the judgment is the importance of upholding consent terms, the obligations of the parties, and preventing deliberate obstruction of recovery proceedings.
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 court upheld the dismissal of a writ petition due to the availability of an alternative remedy under the Recovery of Debts and Bankruptcy Act, emphasizing the need for statutory compliance in auc....
The central legal point established in the judgment is the abuse of writ jurisdiction by the borrowers and the consequences of their actions on the auction-purchaser and the Recovery Officer, leading....
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