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SUNITA AGARWAL, ANIRUDDHA P. MAYEE
IDFC First Bank Ltd. – Appellant
Versus
Dharmendra Popatlal Patel – Respondent
JUDGMENT :
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
1. We have heard Shri R.S.Sanjanwala, learned Senior Counsel assisted by Shri Lalit Patel, learned counsel appearing for the appellant and Mr.Mahesh Bhavsar, learned counsel appearing for the respondent.
2. This intra-court appeal is directed against the judgment and order dated 03/04.08.2023 passed by the learned Single Judge allowing the writ petition in the following manner :-
(i) The action on the part of the respondent bank of selling the secured asset by way of sale through private treaty more particularly pursuant to the notice dated 10.06.2021 and entering into the MOU with respondent no.3 and issuing sale certificate in favour of the respondent no.3 and all consequential actions are hereby quashed and set aside.
(ii)
Secured creditors must adhere to proper notice and valuation requirements per the SARFAESI Act, as failure to do so invalidates asset sales.
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....
It is mandatory for the Secured Creditor/Bank to effect personal service of the sale notice, apart from publication as provided under Rule 8 & 9 of the Security Interest (Enforcement) Rules, 2002.
The auction sale of secured assets was invalid due to violations of statutory procedures, including failure to obtain separate valuations and selling below the reserve price.
(1) Auction sale of secured asset – Unless and until a clear 30 days' notice is given to borrower, no sale or transfer can be resorted to by a secured creditor. Secured creditor cannot effect sale or....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The validity of the sale/e-auction notice under the SARFAESI Act and the Security Interest (Enforcement) Rules, 2002.
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