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2024 Supreme(Guj) 374

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Varshaben Pareshkumar Patel – Petitioner
Versus
The Authorized Officer, Union Bank Of India – Respondent
R/Special Civil Application No. 20368 of 2023 With R/Special Civil Application No. 20373 of 2023 With R/Special Civil Application No. 20374 of 2023 With R/Special Civil Application No. 20376 of 2023 With R/Special Civil Application No. 20377 of 2023
Decided On : 03-04-2024

Advocates Appeared:
For the Petitioner: Mr. Dipen Desai.
For the Respondent: Mr. A.S. Panesar.

IMPORTANT POINT
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 group due to a technical glitch. The court emphasized that the bank's acceptance of the bid and subsequent actions indicated a clear understanding that the petitioners were individual members of the group represented by one person.

Headnote:

SARFAESI - Auction Purchase - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - [Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Sec. 13(4), Sec. 17] - The court directed the respondent bank to execute sale deed in favor of the individual petitioners within 8 weeks, failing which the bank has to refund the amount to all petitioners with 18% running interest.

JUDGMENT :

1. RULE. Mr. A.S. Panesar, learned Counsel waives service of notice of rule on behalf of the respondent-Bank. With consent of the learned advocates appearing for the respective parties, present petitions are taken up for final disposal today. Since common issue is involved in all these petitions, they are being decided of by this common judgment.

2. Leave to correct the flat number in prayer clause in Special Civil Application No.20368 of 2023 and Special Civil Application No.20376 of 2023. Amendment to be carried out forthwith.

3. By way of present petitions under Articles 14, 19 and 226 of the Constitution of India, under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI" for short") and under the Security Interest (Enforcement) Rules, 2002, the petitioners have challenged inaction on the part of the respondent authority.

4. It is required to be noted herein that all the petitioners have prayed for similar relief in all the petitions, except Flat Numbers and therefore, Special Civil Application No.20368 of 2023 is treated as the lead petition wherein it is prayed, inter alia that:-

    "12(A) A. This Hon'ble Court be pleased to admit and allow the petition filed by the Petitioner.

B. This Hon'ble Court be pleased to issue a writ of mandamus or any appropriate writ, order or directions and be pleased to direct Authorized Officer of Respondent Bank to issue Certificate of Sale forthwith (free from all encumbrances and reasonable doubts) in favour of petitioner as purchaser of Flat No.H-602 in the form given in Appendix-V to SARFAESI Rules and further be pleased to direct Authorized Officer of Respondent Bank to execute Registered Sale Deed forthwith in favour of petitioner for Flat No.H-602 and be pleased to direct Authorized Officer of Respondent Bank to handover actual, vacant and physical possession of Flat No.G-202 forthwith without any extension of time to the Respondent Bank.

C. Since petitioner is require to approach before this Hon'ble Court on account of failure of Authorized Officer of Respondent Bank in compliance of statutory and mandatory duty as envisaged under Rule-9 of SARFAESI Rules-2002 and since Authorized Officer of Respondent Bank had deprived the petitioner from enjoying property Flat No.H-602 from 22/6/2023 till date, heavy amount of exemplary cost be imposed upon Authorized Officer of Respondent Bank being public servant of public sector bank in accordance with law.

D. This Hon'ble Court be pleased to pass any other just and proper relief may deem fit, be granted in the interest of justice."

5. It appears that the A.O. of the respondent bank had issued Sale Notice-E-Auction dated 07.03.2023 in Financial Express (English Editor) dated 11.3.2023 in respect of sale of properties as mentioned in the sale notice in respect of the scheme known as "Raj Labdhi Heritage" owned and belonging to M/s Rajlabdhi Infrastructure Pvt. Ltd. as stated in the description of the property part of the said auction sale notice dated 7.3.2023, which came to be published in local daily in English as per SARFAESI Rules. 5.1 The petitioners have participated in the said e-auction in group and out of that group, five petitioners have preferred present petitions. The relevant property shown in lot No.1 of the public notice dated 7.3.2023, reads as under:-

    "LOT 1-(23 Flints & 20 Shops)

All the piece and parcel of Block G, H, & 20 Shops of the project situated at parcel of NA land bearing Block No 86 (Old Survey No. 86,38,97,99 & 74) admeasuring 14438 square meter and as per F P No. 147 of T.P. Scheme No 03 admeasuring 9385 sq. Mtrs., together with construction of residential units and commercial shops standing thereon situated and being at Mouje: Koba, Tal and Dist.: Gandhinagar, scheme known as "RAJ LABDHI HERITAGE" and owned by M/s Rajlabdhi Infrastructure Pvt. Ltd. (Excluding Blocks A,B,C,D,E,F & proportionate land share of these blocks in the scheme, si

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