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IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJEEB K PANIGRAHI
Mohammed Gafur – Appellant
Versus
Bank of Baroda – Respondent
| Table of Content |
|---|
| 1. factual overview of case. (Para 3) |
| 2. petitioner’s claims of misrepresentation. (Para 4) |
| 3. details of alleged failure by the bank. (Para 5) |
| 4. examination of writ petition maintainability. (Para 6 , 7 , 8) |
| 5. maintainability against bank’s conduct. (Para 9 , 10 , 11) |
| 6. duties of disclosure in statutory sales. (Para 12 , 13 , 14) |
| 7. implications of auction conditions. (Para 15 , 16 , 17) |
| 8. responsibilities in verifying property status. (Para 18 , 19) |
| 9. court’s ruling on refund due to bank's failure. (Para 20) |
| 10. judgment conclusion and order. (Para 21 , 22) |
Judgment :
Sanjeeb K Panigrahi, J.
1. The Petitioner has filed the present Writ Petition assailing the impugned letter/order dated 30.01.2025 issued by the Bank of Baroda, represented through its Chief Manager, Regional Office, Sambalpur.
2. The Petitioner further prays for a direction to the Opposite Party–Bank to refund the auction deposit amounting to Rs. 22,43,000/- (Rupees twenty- two lakh forty-three thousand only) along with interest at the rate applicable to fixed deposits.
I. FACTUAL MATRIX OF THE CASE
3. The brief facts of the case are as follows:
(i) The Opposite Party–Bank had issued an advertisement dated 22.
A bank's misrepresentation of property details in an auction can invalidate the sale, and forfeiture of the deposit is unjustified if the sale is characterized by a lack of fair disclosure.
The seller must disclose material defects affecting property usability, failure of which constitutes misrepresentation and gives rise to legal recourse.
Suppression of pending litigation in the e-auction notice by a secured creditor is improper and violates the duty to disclose encumbrances and pending litigation as per the Securitization and Reconst....
The court held that when a statute provides specific remedies, writ jurisdiction under Article 226 should not be exercised, affirming the precedence of statutory procedures over equitable remedies.
The court affirmed that banks must comply with statutory requirements and not engage in arbitrary actions against successful auction bidders, protecting rights under Article 14.
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