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VIVEK RUSIA, PRADEEP MITTAL
Smriti Talkies – Appellant
Versus
Chandra Kumar Galani – Respondent
ORDER
Mittal, J:-- 1. The present writ petition has been filed by the petitioner assailing the order dated 20.5.2013 passed by the Debts Recovery Appellate Tribunal, Allahabad, whereby the appellate tribunal set aside the order dated 30.11.2012 passed by the Debt Recovery Tribunal, Jabalpur, and restored the order dated 7.1.2010 passed by the Recovery Officer confirming the auction sale dated 2.9.2009.
2. Facts of the case in short are that the petitioner Smriti Talkies had availed two loans from respondent No.2 Bank, one on 13.6.1997 for a sum of Rs.13 lakhs and another on 25.7.1998 for Rs.3.25 lakhs, aggregating to Rs.16.25 lakhs. On account of default in repayment, the Bank issued a demand notice dated 28.3.3 under section 13(2) of the SARFAESI Act, 2002 demanding Rs.24,12,102/-.Thereafter, a possession notice dated 12.7.2003 was issued in respect of the secured asset, namely land and building known as Smriti Talkies situated at Khasra No.259/1, Village Dongar Chikhali, Tahsil Parasia, District Chhindwara. In execution proceedings arising out of O.A. Ex. No.92/2004, the Recovery Officer issued an auction sale notice dated 23.7.2009, fixing the auction on 2.9.2009 at 12.00 noon wit
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.
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
(1) Auction sale of mortgaged property – Objective of recovery proceedings is not merely to complete sale but to realise maximum value of secured asset so as to balance interests of creditor and borr....
The judgment emphasizes the finality of sale transactions, the need to balance the interests of defaulters and creditors, and the importance of following the statutory provisions for challenging the ....
The central legal point established in the judgment is the abuse of writ jurisdiction by the borrowers and the consequences of their actions on the auction-purchaser and the Recovery Officer, leading....
Auction sales conducted under the Recovery of Debts Due to Banks and Financial Institutions Act must not be disturbed without substantial evidence of irregularity; procedural compliance is paramount.
Procedural compliance in auction sales is mandatory, and non-compliance renders such sales void.
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