Back
IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. NITIN JAMDAR, CJ, MR. JUSTICE S.MANU, J
Federal Bank Ltd. – Appellant
Versus
A.C.chummar – Respondent
JUDGMENT :
S.MANU, J.
The protracted legal battle between the parties, a bank and a group of borrowers commenced two decades ago, proceeds further with these appeals.
2. By the impugned judgment in W.P(C)No.31683 of 2011, order dated 16 November 2011 in R.A.(SA) No. 76 of 2009 of the Debts Recovery Appellate Tribunal (DRAT) was set aside and the order of the Debts Recovery Tribunal (DRT) in S.A.No.9 of 2008 was restored. The DRT had set aside sale of secured assets mainly on the ground that the requirement of minimum thirty days’ notice under Rule 9 of the Security Interest (Enforcement) Rules, 2002 was violated. In W.A.No.1802 of 2016, the secured creditor Bank is the Appellant. W.A.No.2124 of 2016 is filed by the auction purchaser. W.A.No.2079 of 2016 was filed by the borrower. We will refer to the parties as they are arrayed in the cause title in W.A.No.1802 of 2016.
3. The learned Single Judge found that the sale proceeded on the basis of the notice dated 23 December 2007 by which the sale was scheduled on 29 December 2007. The same was found illegal by the learned Single Judge as Rule 9(1) of the Security Interest (Enforcement) Rules stipulates 30 days notice. Though the learned S
Compliance with the 30 days' notice requirement under Rule 9 of the Security Interest (Enforcement) Rules is mandatory, but can be overlooked if the failure to comply is attributable to the borrowers....
(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....
Secured creditors must adhere to proper notice and valuation requirements per the SARFAESI Act, as failure to do so invalidates asset sales.
Recovery of debt – Mortgaged property cannot be put to auction sale without affording 30 days’ time to petitioner to clear demand.
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....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
