2024 Supreme(Gau) 699
IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J.
Trishila Chetry @ Trishna Chetry, Wo. Sri Hemanta Kumar Sharma – Petitioner
Versus
The State Of Assam, Rep. By Its Chief Secretary To The Govt. Of Assam And Ors. – Respondents
WP(C) No.2514 Of 2024
Decided On : 15-05-2024
Fr the Petitioner: Ms. B.S. Goyal.
IMPORTANT POINT
The main legal point established is that claims for a share of auction proceeds and non-registration of FIRs should be addressed through proper legal proceedings where rights and interests can be established.
Headnote:
SARFAESI Act - Property Dispute - Section 13 of the SARFAESI Act, 2002 - Summary of the acts and sections referenced and discussed by the court: The court discussed the provisions of Section 13 of the SARFAESI Act, 2002, which governs the recovery of outstanding dues by the secured creditor through an auction process. The court highlighted the rights and interests of the parties involved in the auction process and emphasized the need for establishing rights and interests to claim the residual amount.
Fact of the Case:
The petitioner entered into an agreement to purchase a property, which was later auctioned by a bank due to default on a loan taken by the sellers. The petitioner sought a share of the residual amount from the auction proceeds and also requested the registration and investigation of FIRs lodged by her.
Finding of the Court:
The court found that the petitioner's claim for a share of the residual amount and the registration of FIRs could not be entertained through a writ petition. The court emphasized the need for the petitioner to establish her rights and interests in a proper legal proceeding.
Issues: The issues involved the petitioner's claim for a share of the residual amount from the auction proceeds and the registration of FIRs, which the court found could not be addressed through a writ petition.
Ratio Decidendi: The court emphasized the need for establishing rights and interests to claim the residual amount and highlighted the proper legal procedures for addressing non-registration of FIRs.
Final Decision: The writ petition was not entertained, but the petitioner was allowed to pursue other appropriate remedies under the law.
JUDGMENT :
Heard Ms. B.S. Goyal, learned counsel for the petitioner; Ms. S. Baruah, learned Junior Government Advocate, Assam for the respondent nos. 1, 2, 3 & 4; and Mr. A. Ganguly, learned counsel for the respondent nos. 5, 6 & 7.
2. The facts projected in this writ petition can be narrated, in brief, as follows :-
2.1. In the year 2019, the respondent no. 8 and the respondent no. 9 approached the petitioner and her husband offering to sale the second floor of one RCC building which was under construction then on a plot of land belonging to them. After arriving at a mutual agreement, the petitioner agreed to purchase the second floor area measuring 1600 Sq. Ft. of the then under-construction RCC building which was being constructed at a plot of land, measuring 14 Lessas and covered by Dag no. 536 and K.P. Patta no. 618, situate at Village – Sorumotoria, Mouza – Beltola, Revenue Circle – Dispure, District – Kamrup [M], Assam [‘the subject-plot’, for short]. To that effect, the petitioner on one part and the respondent no. 8 and the respondent no. 9 on the other part executed a registered Agreement of Sale on 08.05.2019. It is the case of the petitioner that initially, the petitioner paid a sum of Rs. 14,00,000/-out of the total consideration amount agreed @ Rs. 27,00,000/-. The petitioner has claimed that subsequently, the balance amount of Rs. 13,00,000/-was also paid to the respondent no. 8 and the respondent no. 9. The petitioner has alleged that during the subsequent period, the respondent no. 8 and the respondent no. 9 created a disturbing situation for which the petitioner had to lodge a First Information Report [FIR] at Dispur Police Station on 17.12.2020. The petitioner has alleged that despite lodging of the FIR, the FIR was not registered by the Officer In-Charge, Dispur Police Station. As the petitioner has already paid the agreed consideration of Rs. 27,00,000/- and the respondent no. 8 and the respondent no. 9 were not providing No Objection Certificate for registering the Sale Deed, the petitioner had to fork out a further sum of Rs. 8,00,000/-, as demanded by them prior to registration of the sale deed. Finally, a sale deed was executed and registered between the petitioner on one part and the respondent no. 8 and the respondent no. 9 on the other part on 24.10.2020. The petitioner has claimed that after execution of the registered sale deed, she became the owner of the second floor of the RCC building, construction of which had been competed in the meantime, by incurring a substantial amount. The petitioner has further stated that she had lodged another FIR at the Dispur Police Station on 22.01.2022.
2.2. It was on 16.03.2024, the petitioner came to know that the respondent no. 8 and the respondent no. 9 had taken a housing loan from the respondent Punjab National Bank in the year 2016 mortgaging the landed property including the subject-plot, with the respondent Punjab National Bank when a few bank officials from Bhangagarh Branch of the respondent Bank paid a visit to the subject-plot and informed the petitioner that due to the default on the part of the respondent no. 8 and the respondent no. 9 in repayment of the loan, the respondent Bank had taken over symbolic possession of the subject-land and the building standing therein. The respondent Bank authorities had already initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [‘the SARFAESI Act, 2002’, for short]. In that connection, an auction process had been initiated by publication of an E-Auction Notice by ascertaining the valuation of the landed property including the subject-plot, in order to recover its outstanding dues amounting to Rs. 45,51,781.19 and further interests and other charges thereon. It is the case of the petitioner that in view of the initiation of the auction process, the petitioner’s legitimately purchased property, that is, the second floor of the RCC buildi