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UJJAL BHUYAN, SUREPALLI NANDA
M. Hari Prasad Reddy – Appellant
Versus
Authorised Officer Union Bank of India – Respondent
ORDER :
Ujjal Bhuyan, J.
Heard Mr.C.V.Mohan Reddy, learned senior counsel representing Mr. Ch.Siva Reddy, learned counsel for the petitioner and Dr. K.Lakshmi Narasimha, learned counsel for respondent No.1.
2. By filing this writ petition under Article 226 of the Constitution of India, petitioner seeks a direction to respondent No.1 to issue confirmation of sale after withdrawing letters dated 08.10.2020 as well as 13.10.2020.
3. Case of the petitioner is that petitioner is engaged in software business with interest to make investment in real estate. Respondent No.1 issued e-auction sale notice dated 22.01.2020 for sale of the schedule properties. It may be mentioned that the schedule properties were furnished as security for the loans availed of by respondent No.2. As respondent No.2 committed default in repayment of loan, respondent No.1 invoked provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (briefly ‘the SARFAESI Act’ hereinafter) and consequently issued the e-auction sale notice. There were three schedule properties i.e. Lot ‘A’, Lot ‘B’ and Lot ‘C’.
4. Petitioner was interested in Lot ‘A’ property for which the
The court emphasized the importance of complying with statutory provisions and ensuring that orders and directions are issued in accordance with the law, while also considering the bona fides of the ....
The Court emphasized that the sale confirmation letter could not have been issued before the expiry of the stay order and held that the petitioner should not be burdened with additional interest or p....
Point of Law : It is settled proposition that an order of the Court should cause prejudice to none. In view of the stay granted by this Court, which continues till today, no blame can be laid at door....
A loan classified as Non-Performing Asset must adhere to criteria set by the Reserve Bank of India; effective alternative remedies must be pursued before invoking writ jurisdiction.
The extended period for payment after an auction sale should exclude the duration of any stay order, and the threat of forfeiture of deposit should consider the impact of any stay order.
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.
A Sale Certificate issued by a third party assignee in contravention of a restraint order is void ab initio and cannot be given effect to.
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