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IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K.PANIGRAHI
Divyam Agarwal – Appellant
Versus
Indian Bank, represented through its Branch Manager, Padampur, Odisha – Respondent
| Table of Content |
|---|
| 1. challenge to auction due to misleading information. (Para 1 , 2) |
| 2. arguments focus on material non-disclosure and misrepresentation by the bank. (Para 3 , 4) |
| 3. court emphasizes duty of disclosure and public interest obligations of the bank. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 4. finding of actionable misrepresentation leading to entitlement for the petitioner. (Para 19) |
| 5. court orders provision for access or refund. (Para 20 , 21 , 22 , 23 , 24) |
JUDGMENT :
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.
2. The brief facts of the case are as follows:
(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.
(iv) The Petitioner deposited an additional ₹89,55,000/- (Rupees Eighty- Nine Lakhs Fifty-Five Thousand Only) towards 25% of the bid amount on
The seller must disclose material defects affecting property usability, failure of which constitutes misrepresentation and gives rise to legal recourse.
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.
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 seller's duty to disclose material defects and encumbrances in property sales is paramount, and failure to do so can invalidate the sale.
A secured creditor, who got registration of security interest, has priority in the matter of payment of the dues over all other debts and all revenues, taxes, cesses and other rates payable to the Ce....
Seller is bound to disclose any buyer any material defect in property of which buyer is not aware and which buyer could not ordinarily discover.
The specific and stringent conditions of an auction sale notice, the waiver of statutory rights by the purchaser, and the inapplicability of precedent in determining the legal position under the SARF....
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