IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
NUPUR BHATI, J.
Suresh Agarwal S/o Late Pukhraj – Appellant
Versus
Kotak Mahindra Bank – Respondent
S.B. Civil Writ Petition No. 18771 of 2023
Decided on : 13-12-2023
Concealment of Material Facts - Recovery of Debt - Order 1 Rule 10 CPC - Article 226 and 227 of the Constitution of India - 27.07.2022 - 22.11.2023 - 04.12.2023 - 11.10.2018 - 14.10.2019 - 13.11.2019 - 29.11.2023 - 02.12.2023 - 22.11.2023 - 04.07.2012 - 27.07.2022 - 04.12.2023 - 195/2002 - 45/2008 - 157/2020 - SBCWP No.157/2020 - Annex.-15 - Annex.-7 - Annex.-8 - Annexure-9 - Annexure-10 - Annex.-11 - Annex.-13 - Annex.-14
Fact of the Case:
The petitioner sought an order or direction for the respondent bank to take the final auction amount and issue a Non-Objection Certificate. The respondents had filed an Original Application for recovery of a sum of Rs.4,82,86,341.79 from the petitioner. The petitioner's father had filed a writ petition previously, and the petitioner had also filed a civil suit, both of which were dismissed. The petitioner approached the DRT to pay the amount due with respect to a mortgaged property. The DRT dismissed the application, and possession of the property was taken. The legal heirs of the petitioner's father executed a release deed in favor of the petitioner. The petitioner filed a writ petition to stay the auction proceedings and submitted an undertaking to pay the final auction amount.
Finding of the Court:
The court found that the petitioner had concealed material facts and had not come before the court with clean hands. The court noted that the respondent No.8 was declared as the highest bidder for the property in question, and a sale confirmation certificate was issued in his favor. The court dismissed the writ petition and all pending applications.
Issues: Concealment of material facts, recovery of debt, participation in auction proceedings, possession of property, validity of undertakings, clean hands doctrine
Ratio Decidendi: The court held that the petitioner's concealment of material facts and failure to disclose relevant orders and undertakings led to the dismissal of the writ petition. The court also emphasized the importance of coming before the court with clean hands and participating in legal proceedings with transparency and honesty.
Final Decision: The writ petition and all pending applications were dismissed by the court.
ORDER :
1. The present writ petition has been filed by the petitioner under Articles 226 and 227 of the Constitution of India with the following prayers:-
Any other appropriate writ order or direction which this Hon’ble Court thinks fit in the interest of justice may kindly be passed in favour of the petitioner.”
2. Brief facts of the case are that an Original Application bearing No.195/2002 was filed by the respondents Nos.1 and 2 before the learned Debts Recovery Tribunal, Jaipur (for short as ‘the DRT’) for recovery of the amount and the said application was allowed by the tribunal while holding that the respondents Nos.1 and 2 are entitled to recover a sum of Rs.4,82,86,341.79/-from the respondents Nos.3 to 6. The execution proceedings were initiated bearing No.45/2008 in Original Application No.195/2002.
3. The petitioner’s father Shri Pukharaj (since deceased) preferred a writ petition bearing No.9981/2009 before this Court and vide order dated 04.07.2012 (Annex.-7), the writ petition was disposed of with a direction to the DRT, Jaipur to decide the objections filed by the petitioner within a period of one month. The petitioner has also preferred a civil suit, which was dismissed by holding that the appropriate remedy for the petitioner is to approach the DRT. The petitioner approached the DRT and submitted an application while stating that he is ready to pay the actual amount, which was due with respect to the plot No.76, the property which was mortgage with the respondent-bank.
4. The respondent-bank filed reply to the objections and the DRT while deciding the objections, dismissed the application on 11.10.2018 (Annex.-8). The petitioner thereafter approached the respondent-bank and again submitted that he is willing to pay the amount due to the respondent-bank along with the interest. The petitioner came to know that an order dated 14.10.2019 (Annexure-9) has been passed by the DRT while appointing Commissioner and in pursuance of the said order, the possession of the remaining plot was taken. The tribunal vide order dated 13.11.2019 (Annexure-10) recorded that the possession of the other plot has been taken and for plot Nos.75 and 76, the requisite police aid was not made available as such and the learned tribunal directed the Police Commissioner to make available the requisite police aid.
5. The legal heirs of late Shri Pukhraj Agarwal executed a release deed in favour of the petitioner-Suresh Agarwal on 29.11.2023 (Annex.-11). The petitioner had preferred writ petition bearing No.157/2020 before the Hon’ble Court and the Hon’ble Court had stayed the auction proceedings and after that an undertaking was submitted by the petitioner before the Hon’ble Court that he is ready to pay the final auction amount and if he fails to pay such amount, then, the petitioner will handover the vacate possession of the house to the respondent-bank.
6. The petitioner also filed an application before the DRT and stated that according to the undertaking filed before the Hon’ble Court in the previous writ petition, the petitioner is ready to pay the final auction amount to the respondent-bank and the said application was dismissed by the DRT on 22.11.2023 (Annex.-13) and thereafter, notice dated 02.12.2023 (Annex.-14) was issued for vacating the premises in question. Being aggrieved with the same, the present writ petition has been preferred by the petitioner.
7. Learned counsel for the petitioner submits that :-
(b) The petitioner is in poss
The importance of coming before the court with clean hands and disclosing all material facts in legal proceedings.
The court affirmed that a confirmed auction purchaser's rights are protected under Article 300-A, and arbitrary refusal to accept payment violates these rights.
The main legal point established in the judgment is the maintainability of a writ petition under Article 226 despite the availability of an alternative remedy, based on the peculiar facts of the case....
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
A bona fide purchaser at auction is protected, and a writ petition challenging the confirmation of sale is not maintainable if filed beyond the statutory period.
The Recovery Officer should cancel the auction sale if the bank's dues are paid before the sale is confirmed. The auction purchaser has no right over the property before the sale is confirmed.
The court upheld the dismissal of a writ petition due to the availability of an alternative remedy under the Recovery of Debts and Bankruptcy Act, emphasizing the need for statutory compliance in auc....
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