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IN THE HIGH COURT AT CALCUTTA
Amrita Sinha
Vaidhai Agarwal alias Sonu Kumari Kedia – Appellant
Versus
Indian Bank (Erstwhile Allahabad Bank) – Respondent
| Table of Content |
|---|
| 1. background of loan and legal notices. (Para 1 , 2 , 3 , 4) |
| 2. allegations of improper notice handling. (Para 5 , 16 , 17 , 18) |
| 3. court's observations on petitioner’s diligence. (Para 6 , 10 , 23 , 30 , 34) |
| 4. legal standards for auction confirmations. (Para 26 , 35 , 36 , 39) |
| 5. dismissal of the writ petition. (Para 40 , 41 , 42 , 43) |
JUDGMENT :
Amrita Sinha, J.
1. The matter relates to a property which was mortgaged to the Indian Bank. The bank took steps under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for recovery of the due amount.
2. As on March 2025 the due amount was Rs.26,45,00,000/- (Rupees twenty-six crore forty-five lakh). The loan account was classified as non- performing asset (NPA) with effect from January 28, 2023. A statutory notice under Section 13(2) of the 2002 Act was served upon the borrower on July 15, 2023 and July 17, 2023. Steps under Section 13(4) of the 2002 Act was taken in July 2023 and a newspaper publication was made in October 2023.
3. The petitioner is currently aggrieved by the notice affixed on the wall of the subject premises dated June 24, 2025 directing t
The court upheld the bank's actions under the Act, confirming that due process was followed in the recovery of the loan, dismissing the petition for lack of diligent prosecution by the applicant.
The borrower's right of redemption is extinguished upon the publication of the auction notice, allowing the auction purchaser to claim possession.
The right of redemption under the Securitisation Act ceases upon auction notice publication, but the Debt Recovery Tribunal can still adjudicate borrower grievances.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
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....
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.
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