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VIBHU BAKHRU, AMIT MAHAJAN
SZF Exports Pvt. Ltd. – Appellant
Versus
Punjab National Bank – Respondent
JUDGMENT
Vibhu Bakhru, J.
1. The petitioners have filed the present petition impugning an order dated 14.07.2023 passed by the Debts Recovery Appellate Tribunal, Delhi (hereafter `the DRAT') in Misc. Appeal No. 113/2023 captioned SZF Exports Pvt. Ltd. & Anr. v. Punjab National Bank. The petitioners had preferred the aforesaid appeal against an order dated 22.06.2023, passed by the Debts Recovery Tribunal (hereafter `the DRT') whereby, the DRT had expressed the prima facie view that there were no irregularities in the measures taken by the respondent bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter `the SARFAESI Act').
2. The DRT had further rejected the prayer of the petitioners for restraining the respondent bank/court receiver from taking possession of the property in question - Industrial Property, Land and Building situated at Plot No.511-512, Sector 8, IMT Manesar, Gurugram, Haryana, plot area 900 square meters (hereafter `the property'). The Ld. DRT had noted that there was no dispute that the petitioners had availed of the loan facilities and had defaulted in repaying the same.
3. The petitioners
Compliance with the provisions of the SARFAESI Act, particularly Rule 9(3), is crucial in challenging auction processes, and appellants are not entitled to additional time for making the necessary de....
The SARFAESI Act mandates strict adherence to auction payment timelines, allowing forfeiture of deposits for non-compliance.
Order of the Tribunal it is not discernible as to whether any application for condonation of delay was filed or how the Tribunal dealt with the belated approach of the borrowers.
(1) Auction sale of secured asset – Validity of auction is not to be tested on equitable considerations but strictly on the touchstone of governing statutory regime.(2) Auction sale of secured asset ....
Setting aside auction sale – Mere typographical error due to inadvertence which has not caused any prejudice to borrowers, that in itself could not be considered to be ground to annul process held by....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The extended period for payment after an auction sale should exclude the duration of any stay order, and the threat of forfeiture of deposit should consider the impact of any stay order.
Auction sales conducted under the Recovery of Debts Due to Banks and Financial Institutions Act must not be disturbed without substantial evidence of irregularity; procedural compliance is paramount.
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