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N. V. ANJARIA, BHARGAV D. KARIA
Vision Organics Ltd. – Appellant
Versus
Fatehsinh M Chauhan – Respondent
JUDGMENT :
[Bhargav D. Karia, J.]
1. Heard party-in-person Mr. Jatin H. Shah – petitioner no.2 and Managing Director of petitioner no.1 company – original borrower and learned advocate Mr. Rushabh R. Shah for respondent no.1 (auction purchaser). Though served, no one appears for respondent no.2 – Bank of Baroda.
2.The petitioner has challenged the order dated 2.07.2019 passed by the Debts Recovery Appellate Tribunal, Mumbai (For short “DRAT”) in Misc. Appeal No.5/2018 filed by respondent no.1-auction purchaser feeling aggrieved by the judgment and order dated 1.11.2017 in Appeal No.4/2013 passed by the Debts Recovery Tribunal-II, Ahmedabad (For short “DRT”).
3. Facts leading to filing of this writ petition are narrated in nutshell as under :
3.1) The long drawn legal battle that has raged over past two decades or so has its genesis in a loan which respondent no.2 bank advanced to the petitioner no.1 company. Loan was advanced on the basis of equitable mortgage of the properties owned by petitioner no.1 company. The borrower having defaulted in the repayment of loan amount, respondent no.2 bank filed Original Application No.300/2001 and 326/2001 against the petitioners for recovery o
Procedural compliance in auction sales is mandatory, and non-compliance renders such sales void.
The main legal point established in the judgment is that the Recovery Officer should not proceed with the execution of the recovery certificate after a stay has been granted by a superior court, and ....
The court established that compliance with pre-deposit requirements is mandatory for challenging sales under the Recovery of Debts Due to Banks and Financial Institutions Act and related rules.
Non-compliance with the requirement to deposit the remainder of the purchase money within the specified time renders the auction sale a nullity.
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.
The judgment emphasizes the duty of the Recovery Officer to accurately specify the amount due in the sale proclamation and the valuable right of the judgment debtor to save his property under Rule 60....
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