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P. NAVEEN RAO, J. SREENIVAS RAO
K. Sahaja Rao, w/o. K. Satyanarayana Rao – Appellant
Versus
Assistant General Manager, State Bank of India – Respondent
ORDER :
(P. Naveen Rao, J.)
1. Heard learned senior counsel Sri S.Ravi appearing for Sri V.Murali Manohar for petitioner (the borrower), and learned senior counsel Sri M.Narender Reddy appearing for Sri M.Srikanth Reddy for respondent-SBI (the bank) in W.P.No.21511 of 2020; learned senior counsel Sri Vivek Reddy appearing for Sri Manoj Reddy Keshi Reddy for petitioner (the auction purchaser), learned senior counsel M.Narender Reddy appearing for Sri M.Srikanth Reddy for respondent No.1 (the bank) and learned senior counsel Sri S.Ravi appearing for Sri V.Murali Manohar for respondent no.2 (the borrower) in W.P.No.13330 of 2021.
2. These two Writ Petitions concerns various measures taken by the State Bank of India to recover the loan amount from the borrower. As the Bank, the borrower and the auction purchaser are same, both Writ Petitions are heard together and decided by common order. For convenience, parties are referred to as borrower, the Bank and the auction purchaser respectively. The borrower is petitioner in W.P.No.21511 of 2020 and the auction purchaser is petitioner in W.P.No.13330 of 2021.
3. Borrower availed Rs.3.40 crores from the Bank. Borrower defaulted in repayment o
The High Court cannot entertain a writ petition under Article 226 when an effective alternative remedy exists under the SARFAESI Act, emphasizing the need for exhaustion of statutory remedies.
The borrower's right to redeem the mortgage continues until the sale certificate is issued, and the OTS Policy applies retroactively, preventing the bank from proceeding with the sale.
Auction sale under SARFAESI Act upheld; simultaneous civil proceedings do not invalidate the completed transaction, and allegations of undervaluation found unsubstantiated.
A bank cannot proceed with auction proceedings after issuing a one-time settlement proposal unless it has revoked the proposal and the acceptance period has expired.
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
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 the SARFAESI Act extinguishes upon publication of an auction notice, and guarantees against the actions of secured creditors must follow established procedures before in....
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