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IN THE HIGH COURT AT CALCUTTA, CIRCUIT BENCH JALPAIGURI
HARISH TANDON, HIRANMAY BHATTACHARYYA
Kaberi Chakraborty – Appellant
Versus
UCO Bank, Jalpaiguri Branch – Respondent
JUDGMENT :
HIRANMAY BHATTACHARYYA, J.
1. This appeal is at the instance of the borrowers and is directed against the orders dated 13.11.2024 and 14.11.2024 passed by a learned Single Judge sitting in the Jalpaiguri Circuit Bench of the High Court at Calcutta in WPA 2366 of 2024.
2. The appellant no. 1 is the wife of the appellant no. 2. The appellants are the partners of a partnership firm under the name of M/s Kushal Tea Factory having its place of business at Torulpara, Pandapara Kalibari, P.O.- Pandapara Kalibari, P.S.- Kotwali, District - Jalpaiguri (hereinafter referred to as the 'said partnership firm'). The partnership firm availed a the term loan of Rs. 1,49,40,000/- from UCO Bank, Thana Road, Jalpaiguri Branch, District - Jalpaiguri. The said partnership firm in order to secure the loan provided a one storied dwelling house in the name of appellant no.2 situated at Pandapara Kalibari being R.S. plot no.1792/3194, R.S. plot no.1792/3195, 1792 under Khatian No. R.S.6945/1/9, 6945/1/0, 6945/1/11, 2 6945/1/12, 6945/1/13, 6945/1/14, 6945/1/17-27 for J.L. No.07 under Mouza – Kharia, District Jalpaiguri measuring about 12.00 cottahs (hereinafter referred to as the ‘said property’) a
Secured creditors must adhere to proper notice and valuation requirements per the SARFAESI Act, as failure to do so invalidates asset sales.
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
The court established that strict adherence to notice requirements under the Securitization Act is essential to protect a borrower's right of redemption.
The right of redemption is available to the mortgagor until the sale is complete by registration of sale, and the violation of statutory rules may entitle the borrower to redeem the property.
Compliance with statutory notice requirements is imperative in mortgage auctions; failures may invalidate the sale, preserving the mortgagor's right of redemption until formal sale registration.
The main legal point established in the judgment is the interpretation of Rule 9(4) and 9(5) of the Security Interest (Enforcement) Rules, 2002, highlighting the requirement for the purchaser to pay ....
The mortgagor's right of redemption under the amended Section 13(8) of the SARFAESI Act is extinguished upon publication of the auction notice.
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