Back
IN THE HIGH COURT OF ORISSA, CUTTACK
S.K. SAHOO, SIBO SANKAR MISHRA
Jagannath Cashew Processing Unit (Loanee) – Appellant
Versus
Registrar, Debts Recovery, Appellate Tribunal (DRAT) Kolkata – Respondent
| Table of Content |
|---|
| 1. facts surrounding the loan and auction sale. (Para 1 , 3 , 5 , 10) |
| 2. court's examination of evidence and procedural adherence. (Para 6 , 12 , 18) |
| 3. arguments regarding the legality of auction and claims. (Para 8 , 9 , 11) |
| 4. determination of valid auction process and dismissal of claims. (Para 21 , 23) |
| 5. conclusion denying petition and affirming lower tribunal's decision. (Para 24 , 25) |
JUDGMENT :
1. This writ petition has been filed by the petitioners assailing the order dated 15.11.2019 passed by the Debts Recovery Appellate Tribunal, Kolkata (hereinafter referred to as “DRAT”) in Appeal No.42 of 2019, whereby the learned Appellate Tribunal allowed the appeal filed by the State Bank of India (since merged with Union Bank of India) and reversed the order dated 02.04.2019 of the learned Debts Recovery Tribunal, Cuttack (hereinafter referred to as “DRT”). By the said order dated 02.04.2019, the DRT had allowed S.A. No. 1 of 2018 filed by the petitioners under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “SARFAESI Act”), quashed the demand and possession notices as
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
While expressing the aforesaid view, we are conscious that the powers conferred upon the High Court under Article 226 of the Constitution to issue to any person or authority, including in appropriate....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The DRAT has the power to remand a SARFAESI application to the DRT for fresh adjudication, where the DRT has not considered various disputed issues raised by the parties, including service of notice,....
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....
The bank cannot negotiate a sale with the second highest bidder without conducting a fresh auction if the highest bidder fails to comply with auction conditions.
The High Court cannot entertain a writ petition under Article 226 when an effective alternative remedy exists under the SARFAESI Act, emphasizing the need for exhaustion of statutory remedies.
The main legal point established in the judgment is the interpretation of Rule 9(4) and 9(5) of the Security Interest (Enforcement) Rules, 2002, highlighting the requirement for the purchaser to pay ....
The court upheld the Recovery Officer's discretion in auction conduct, ruling that established legality and auction terms prevent invalidation due to later higher bids.
The SARFAESI Act mandates exhausting statutory remedies before seeking extraordinary relief under Article 226; procedural compliance is essential, and the auction process cannot be set aside absent s....
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
