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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
| Table of Content |
|---|
| 1. factual background of the auction process and parties involved. (Para 2 , 3 , 4) |
| 2. arguments against the auction sale's undervaluation and lack of transparency. (Para 5 , 6) |
| 3. court's analysis on technical glitches and valuation disputes. (Para 8 , 9 , 10) |
| 4. ratio decidendi regarding the correctness of auction discretion. (Para 11 , 12) |
| 5. conclusion upholding the auction sale. (Para 14) |
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 HiTe
The court upheld the Recovery Officer's discretion in auction conduct, ruling that established legality and auction terms prevent invalidation due to later higher bids.
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
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 ....
(1) Auction sale of mortgaged property – Objective of recovery proceedings is not merely to complete sale but to realise maximum value of secured asset so as to balance interests of creditor and borr....
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....
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