The bank must refund the auction amount to the purchaser due to failure to provide possession of the property, a duty it cannot evade by citing the 'as is where is' sale condition.

1. Heard Sri Surya Mani Pandey, learned counsel for the petitioner and Sri Prashant Kumar Srivastava, learned counsel appearing for respondent no. 2.

2. Petitioner by means of this writ petition under Art.226 of the Constitution has sought indulgence of this court for a direction to the respondent no. 2 (Authorised officer / Chief Manager, Allahabad Bank, Sultanpur Branch, to refund the entire amount of Rs.60,00,000/-(Rupees 60 Lacs) with 18% interest and Rs.15 lakhs (rupees fifteen lakh) as damages.

3. In brief, the conspectus of the controversy emanates from the fact that the petitioner, who is an auction - purchaser of secured assets auctioned by the Allahabad Bank, in proceedings conducted in pursuance to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act”), has deposited the entire bid amount at the auction held on 28.06.2017, yet the possession of the property has not been handed over to him, despite lapse of nearly one and a half year and level best efforts made by him.

4. It has been submitted by the Counsel for the petitioner that the petitioner has participated in the e - auction sale in respect of property "land Plot No. 384 M, House No. 12/2, measuring 3060 sq.ft., situated at Village - Payagipur, Pargana - Meeranpur, Tehsil - Sadar, District - Sultanpur" in the name of Vinod Kumar Pandey s/o Shri Ram Murti Pandey, against recovery of sum of Rs.31,89,156/- with interest expenses thereon due on M/s Farmer Agro Traders through its proprietor Vijay Kumar Pandey. In the auction notice dated 25.5.2-17, the reserve price of the property was fixed as Rs.60 Lacs. The petitioner with an intention to participate in auction proceedings deposited Rs.6 lakhs known as Earnest Money Deposit (hereinafter referred to as "EMD") with the opposite party number 2, through a cheque bearing number 000862 dated 23/06/17 in the name of Authorised Officer, Allahabad Bank, Sultanpur. Thereafter, he participated in the auction proceedings held on 28/06/17 and quoted Rs.60 Lacs for the aforesaid property, as the bid of the petitioner was highest, the bid was released in his favour. As per terms and condition of the bid, the petitioner deposited 25% of the bid amount i.e. Rs.9 lakhs on the same day, as required under R.9 (3) of Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as "Rules, 2002") but the sale confirmation letter was not issued in his favour.

5. It has been averred by the petitioner in the writ petition that the petitioner was directed to pay remaining 75% of the sale amount within a period of 15 days from the date of auction. A