P.R.RAMACHANDRA MENON
Muhammad Rafeeq – Appellant
Versus
Bank Of Baroda – Respondent
1. Whether the petitioners, who are strangers to the loan given by the first respondent Bank to the borrower, from whom the petitioners purchased one of the items of the properties over which security interest was created, is eligible to have the said property spared, placing reliance on Sec. 56 of the Transfer of property Act, is the point mooted in this Writ Petition.
2. The petitioners purchased the property covered by Ext. P1 sale deed from one Mustaffa, who had borrowed some amount from the first respondent, creating security interest over two items of properties. When the borrower turned to be a defaulter, the Bank declared the Account as 'NPA' and proceeded with further steps invoking the machinery under the SARFAESI Act, which led to issuance of Ext.P3 sale proclamation. The learned Counsel for the petitioners submits that, since the defaulter/borrower has already conveyed the first item of the properties, though after creating security interest over both the items of the properties, the rights and liberties of the petitioners, being the subsequent purchasers, so as to have the item 'marshalled' as contemplated under Section 56 of the Transfer of Property Act, ca
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