Back
AURABH SHYAM SHAMSHERY
Arun Kumar Jain – Appellant
Versus
Presiding Officer Debts Recovery Tribunal – Respondent
ORDER :
1. This writ petition is being filed by auction purchasers being aggrieved by impugned order dated 19.11.2013 passed by Debt Recovery Appellate Tribunal, Allahabad in Appeal No. R214 of 2013 whereby said appeal filed by petitioners was dismissed. By amendment, petitioners have also challenged the order dated 23.10.2013 passed by Debts Recovery Tribunal, Allahabad in Securitization Application No. 153 of 2009.
FACTUAL MATRIX
2. M/s Firozabad Cold Storage Ltd., its Managing Director and others, who are respondents no. 4 to 8 (hereinafter referred to as “borrowers”) have availed credit facility from the respondent bank (Bank of Baroda) sanctioned on 14.10.2005 for the business of cold storage.
3. The borrowers have failed to repay the loan amount, therefore, the respondent bank has issued a notice dated 06.04.2009 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “SARFAESI Act”). The borrowers have submitted their reply on 01.06.2009 under Section 13 (3A) of SARFAESI Act.
4. The borrowers r
The SARFAESI Act mandates strict adherence to auction payment timelines, allowing forfeiture of deposits for non-compliance.
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
Mandatory compliance with Rule 9(4) requires written agreement for extending balance payment beyond 15 days in e-auctions under SARFAESI Rules.
Setting aside auction sale – Mere typographical error due to inadvertence which has not caused any prejudice to borrowers, that in itself could not be considered to be ground to annul process held by....
Cheque deposit of 25% bid amount violates mandatory R.9(3) SARFAESI Rules requiring immediate cash; sale confirmation during interim order is nullity.
Order of the Tribunal it is not discernible as to whether any application for condonation of delay was filed or how the Tribunal dealt with the belated approach of the borrowers.
(1) Auction sale of secured asset – Validity of auction is not to be tested on equitable considerations but strictly on the touchstone of governing statutory regime.(2) Auction sale of secured asset ....
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
