The seller must disclose material defects affecting property usability, failure of which constitutes misrepresentation and gives rise to legal recourse.

JUDGMENT :

Dr. S.K. Panigrahi, J.

1. The Petitioner, in the present Writ Petition, challenges the E-auction sale notice dated 20.08.2023 and the E-auction held on 21.08.2023, conducted by Opposite Party Nos.1 and 2 Bank as being illegal, arbitrary, and violative of the principles of natural justice.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(i) The Opposite Party No.2 Bank issued an E-auction sale notice dated 02.08.2023 for the sale of M/s Samleswari Rice Mill, including its plant and machinery, located over Khata No. 83/253, Plot No. 34 (Area: Ac. 0.970 Dec.) and Plot No. 38 (Area: Ac. 1.480 Dec.) of Mouza Pudelkhar, Tahasil Padampur, District Bargarh, as well as Khata No. 21112, Plot Nos. 205/451 and 206/452 (Area: Ac. 3.580 Dec.) of Mouza Salebahali, Tahasil Padampur, District Bargarh.

(ii) The Petitioner, being interested in the said property, approached Opposite Party No.2 seeking further details. Upon examining the documents provided, including a sketch map, the Petitioner decided to participate in the E-auction.

(iii) On 19.08.2023, the Petitioner deposited 10% of the Earnest Money Deposit (EMD), amounting to ₹37,20,000/- (Rupees Thirty-Seven Lakhs Twenty Thousand Only). The Petitioner participated in the auction on 21.08.2023 and was declared the highest bidder vide email dated 22.08.2023.

(iv) The Petitioner deposited an additional ₹89,55,000/- (Rupees Eighty- Nine Lakhs Fifty-Five Thousand Only) towards 25% of the bid amount on 23.08.2023 and requested a period of 20 days to deposit the remaining 75%.

(v) The Opposite Party Nos. 1 and 2 permitted the request, subject to the condition that interest would be payable on the delayed deposit.

(vi) On 28.09.2023, the Petitioner deposited the remaining ₹3,80,25,000/- (Rupees Three Crores Eighty Lakhs Twenty-Five Thousand Only), partly financed by a loan of ₹3,09,00,000/- (Rupees Three Crores Nine Lakhs Only) availed from Opposite Party No.3, i.e., Canara Bank, Sambalpur.

(vii) On 30.09.2023, the Petitioner deposited ₹3,36,912/- (Rupees Three Lakhs Thirty-Six Thousand Nine Hundred Twelve Only) as interest for the delayed period (07.09.2023 to 28.09.2023), bringing the total payment to ₹5,10,36,912/- (Rupees Five Crores Ten Lakhs Thirty-Six Thousand Nine Hundred Twelve Only). A Certificate of Sale was issued in the Petitioner’s favour on the same day.

(viii) For the purpose of registration and mutation, the Petitioner, on 18.10.2023, requested Opposite Party Nos.1 and 2 to provide the sketch map of the property. In response, the Bank, on 19.10.2023, shared the sketch map via email, clarifying that the property was sold based on that sketch map, which depicted an access road to the auctioned property.

(ix) Upon initiating steps for registration before the concerned Sub- Registrar, the Petitioner became aware that the property inherently lacked an approach road. The Petitioner promptly contacted the Bank for clarification and started becoming inquisitive about the approach road.

(x) On 20.10.2023, the Bank forwarded a modified sketch map following a demarcation of the property. The updated map indicated that the auctioned plots were surrounded by private lands and had no clear access road, raising concerns regarding ingress and egress to the property.

(xi) The Petitioner approached the Bank, requesting that the property be delivered with access as depicted in the initial sketch map. However, no further steps were taken by the Bank in this regard.

(xii) The Petitioner