IN THE HIGH COURT AT CALCUTTA
TAPABRATA CHAKRABORTY, PARTHA SARATHI CHATTERJEE, JJ.
Yadav Prasad Tosniwal - Appellant
Versus
The Reserve Bank of India & Ors. - Respondents
FMA No. 1034 of 2021 with IA No. CAN 1 of 2022
Decided On : 09-06-2023
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section 13(2) – Loand – Default in payment – Auction Sale - Whether there are any encumbrances over property before putting up property for sale more so when secured creditor is a nationalised bank - Held, At time of execution of sale deed appellant had paid an amount of as stamp duty and registration fee said amount was not paid to bank and it did utilise same - Sale price of paid by appellant had been received and retained by CB - Appellant also had not made a proper enquiry about property before participating in auction and he ought to have been more diligent - For laches Court are not inclined to allow appellant’s prayer for interest and refund of stamp duty and registration fee - It would be iniquitous to deny appellant’s prayer for refund of consideration money - Appeal Disposed of.
JUDGMENT :
Tapabrata Chakraborty, J.
1. The present appeal has been preferred challenging the order dated 17th June, 2019 passed in a writ petition being WP No.19608 (W) of 2016. In connection with the appeal, the appellant/writ petitioner has also filed an application for appropriate order being CAN 1 of 2022.
2. The appellant’s case is that the respondent no.5 published a notice in the newspapers on 29th September, 2012 for e-auction of different immovable properties. The appellant participated in the auction held on 1st November, 2012 conducted by the Central Bank of India (hereinafter referred to as CB) in respect of a flat being Flat no. 401 on the fourth floor of Krishnachura Apartment located at AG-129/1, Tal Bagan, Krishnapur, Kolkata-700101 (hereinafter referred to as the said flat), as detailed in serial no. 11(a) of the auction notice. The appellant submitted a bid of Rs.22,00,000/- and emerged to be the highest bidder. Upon acceptance of the bid amount, the sale certificate was issued on 27th December, 2012. The sale deed pertaining to the said flat was thereafter executed on 28th August, 2014 and the original title deed being no. 10524 of 2008 was also handed over to the appellant. Suddenly, on 7th September, 2015 a possession notice was affixed in the said flat. Stating such fact the appellant lodged a complaint on 29th September, 2015 before the Banking Ombudsman but in vain. Again on 29th April, 2016, persons claiming to be the recovery agents of SBI visited the flat and threatened to dispossess the appellant. On 4th May, 2016, the appellant lodged a complaint before the DGM, Stressed Assets Management Branch, SBI and in reply, the appellant was communicated a memo dated 19th May, 2016 by the Authorised Officer (in short, AO) of SBI intimating inter alia that the flat in question was owned by one Gaurav Surana (Jain) vide original deed no. 10524 of 2008 and the same had been mortgaged to SBI as security for sanctioning credit facilities to M/s Bhagwati Lifestyle Private Limited. The said account became NPA on 27th February, 2012 and accordingly a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, SARFAESI Act) was issued on 22nd December, 2012 and possession was taken under Section 13(4) of the SARFAESI Act on 20th September, 2013. Thereafter, the appellant through his learned advocate issued a demand notice dated 7th June, 2016 protesting against the acts of the CB and claiming refund of the consideration amount along with interest. As there was no response, the appellant was constrained to prefer the writ petition. During pendency of the writ petition, the Investigating Officer, Central Bureau of Investigation (in short, CBI) by a notice dated 19th September, 2017 intimated that CBI has started a case being CBI Case No.RCBSK2016E0004 dated 18th March, 2016 relating to bank fraud on SBI. In connection with the said case, the mother deed pertaining to the flat in question was also seized from the appellant. Such facts were brought on record by filling a supplementary affidavit.
3. The writ petition was dismissed for default on 5th March, 2019. The restoration application filed thereafter was allowed by the order impugned and the writ petition was disposed of observing inter alia that ‘apparently, there are title disputes in respect of an immovable property. State Bank of India is also claiming security interest in respect of the same immovable property which was sold by Central Bank of India. A decision may be required as to which of the Banks has a better or a simpler right title and interest in respect of the immovable property concerned. It is for the parties to have the disputes resolved before the appropriate forum, in accordance with law. A writ Court need not enter into title disputes’. After filing of the appeal, the Assistant Director, Prevention of Money Laundering Act, 2002 (in short, PMLA) vide notice dated 26
Jai Logistics, rep. by its Partner, G. Bhaskar vs. The Authorized Officer, Syndicate Bank
Janatha Textiles and Others vs. Tax Recovery Officer and Another
The court held that the petitioners, as successful bidders in the e-auction, were entitled to have the sale deed executed in their favor as individuals, despite participating in the auction as a grou....
No one can be permitted to get benefit of his own wrong and cannot be permitted to get benefit of a void transaction.
The duty of the authorized officer to disclose material defects in the property's title overrides the defense of selling the property 'as is where is'. However, after a change in the fundamental scen....
The seller's duty to disclose material defects and encumbrances in property sales is paramount, and failure to do so can invalidate the sale.
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