Back
A.RAJASHEKER REDDY, SHAMEEM AKTHER
J. Mahesh Babu – Appellant
Versus
State Bank of India – Respondent
ORDER :
A. Rajasheker Reddy, J.
1. This writ petition is filed by the petitioners who claim to be the auction purchasers in respect of land in an extent of Ac.16.28 guntas situate in Sy.Nos.173, 334 (Part), 345, 347, 348 and 349, Yedhira village, Mahabubnagar mandal and District, in an e-auction conducted on 01-02-2020 and were declared successful bidders; pursuant thereto the sale in respect thereof was confirmed in their favour. The total bid amount is Rs.12,10,00,000/- (Rupees Twelve Crores Ten Lacs Only) and the petitioners paid the entire amount in respect of the bid by 03-07-2020. However, before the sale certificate could be issued, the petitioners came to know that a part of auctioned land was found to be a surplus land under the provisions of Telangana Land Reforms (Ceiling of Agricultural Holdings) Act, 1973 and vests with the Government. Since the 2nd respondent did not show prefect title of the land in question, the petitioners made representation dated 01-10-2020 to refund the amounts paid by them with interest @ 18% per annum. Pursuant to the same, an amount of Rs.12,10,92,500/- (Rupees Twelve Crores Ninety Two Thousands Five Hundred Only) was returned to the petitioner
The duty of the bank to disclose encumbrances and material defects in the title of the auctioned property, as mandated by Rule 8(6)(f) of the Security Interest (Enforcement) Rules, 2002, and the requ....
The main legal point established in the judgment is the maintainability of a writ petition under Article 226 despite the availability of an alternative remedy, based on the peculiar facts of the case....
The court held that when a statute provides specific remedies, writ jurisdiction under Article 226 should not be exercised, affirming the precedence of statutory procedures over equitable remedies.
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.
The tribunal has jurisdiction to decide auction sale disputes under the SARFAESI Act, and the High Court should insist on exhausting statutory remedies before entertaining a writ petition.
Bank must disclose known encumbrances in SARFAESI auction; failure entitles purchaser to refund with interest.
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
