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IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
VIVEK RUSIA, PRADEEP MITTAL
Kamla Devi – Appellant
Versus
Bank of India – Respondent
ORDER :
1. Since both these writ petition involve a common issue, they are heard and decided together by this common order. References to the annexures and documents are taken from W.P. No. 19856 of 2015 for the sake of convenience.
2. The case, in brief, in W.P. No. 5555 of 2017 is that Late V.P. Singh, the husband of Petitioner No. 1 and father of Petitioner Nos. 2 to 4, is deceased. He, along with Petitioner No. 1, had constituted a partnership firm in the name and style of M/s R&R Oil Mills. The firm was the borrower. The firm availed an overdraft facility from the respondent Bank and mortgaged the following properties: (i) land measuring 7,200 sq. ft. situated at Khasra No. 77/1, Gwarighat, Narmada Road, Jabalpur (M.P.) and (ii) two plots, each measuring 2,400 sq. ft., situated at Khasra No. 77/17, Gwarighat Ward, Jabalpur (M.P.) (hereinafter referred to as the “mortgaged properties”). M/s R&R Oil Mills failed to repay the outstanding dues. Consequently, the respondent Bank initiated recovery proceedings under Section 13(4) of the SARFAESI Act, 2002. A sale notice was published in the newspaper dated 23.01.2010 by the Bank, and the auction was scheduled for 10.02.2010. However,
Procedural violations in auction processes under the SARFAESI Act invalidate proceedings, emphasizing the right of redemption and proper valuation of secured assets.
Compliance with statutory notice requirements is imperative in mortgage auctions; failures may invalidate the sale, preserving the mortgagor's right of redemption until formal sale registration.
The SARFAESI Act mandates exhausting statutory remedies before seeking extraordinary relief under Article 226; procedural compliance is essential, and the auction process cannot be set aside absent s....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The right of redemption under SARFAESI Act is extinguished after the issuance of a sale certificate, rendering claims by lessees during such proceedings legally unsustainable.
Court ruled that non-compliance with SARFAESI rules voided sale; observed that the rights of borrowers can be waived through their conduct and failure to assert them timely.
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