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SINDHU SHARMA
S. K. Bakshi – Appellant
Versus
Punjab National Bank – Respondent
JUDGMENT :
Sindhu Sharma, J.
1. The petitioner in this petition seeks issuance of appropriate writ of mandamus, order or direction to the respondents to put him into physical possession of the property being a double story commercial building constructed on a plot measuring 20' x 60' on shop Site No. 115 Phase-I Fruit Market Complex, Narwal Jammu. The case set up by the petitioner is that Respondent No. 1/Punjab National Bank had issued an e-auction sale notice in the newspaper on 04.09.2019 as per SARFAESI Act and Rules with respect to auction of Double Story Commercial Building constructed on a plot measuring 20' x 60' on Site No. 115 Phase-I Fruit Market Complex, Narwal Jammu owned and possessed by late Sh. Vipin Kumar Gupta. This premise was leased out and possessed by legal heirs of deceased lessee namely Vipin Kumar Gupta, who had mortgaged the lease hold rights of the property which were granted to him by the Jammu and Kashmir Horticulture Department by way of Lease Deed dated 15.01.2011 executed by the said department in his favour. As the borrower of the property, i.e., M/s N.S. Walnut became defaulter, the property was proceeded against and ultimately, e-auction of the prop
The court established that a secured creditor must deliver physical possession of a property sold at auction, free from encumbrances, as per the SARFAESI Act and the Security Interest (Enforcement) R....
Secured creditors must fully deliver the auctioned property and disclose material defects; failure to do so incurs liability for damages, including refunds with interest.
Writ court directs SARFAESI auction sale registration despite delays, relegates possession and property disputes to civil court.
The borrower's right of redemption is extinguished upon the publication of the auction notice, allowing the auction purchaser to claim possession.
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.
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