OD-2 ORDER SHEET IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction ORIGINAL SIDE WPO/269/2025 STEEL ARMADURA INNOVACIONES PVT LTD. AND ANR.

-VS UNION OF INDIA AND ORS.

BEFORE:

The Hon’ble JUSTICE GAURANG KANTH Date: 25th April, 2025.

Appearance:

Mr. Ratnanko Banerji, Sr. Adv.

Mr. Kumarjit Banerjee, Adv.

Ms. Sanchari Chakraborty, Adv.

Mr. SamridhaSaha, Adv.

…for the petitioner.

Mr. R. Chowdhury, Adv.

Mr. PurnenduModak, Adv.

Ms. S. Saha, Adv.

…for respondent nos. 2 & 3.

Mr. Siddhartha Chatterjee, Adv.

Ms. AniktaUpadhyay Agarwal, Adv.

…for successful bidder.

The Court: The petitioner has filed the present writ petition challenging the auction sale conducted by the respondent bank under the SARFAESI Act in pursuance of the Third Auction Notice dated 14.02.2025 as well as the Sale Certificate issued in favour of the respondent no. 4 in respect of the secured assets of M/s. Chhabra Ispat Private Limited.

The origin of this writ petition lies in the facts that M/s Chhabra Ispat Private Limited defaulted in repaying the credit facilities availed from the respondent no. 2 bank. Hence, the respondent no. 2 took measures under the SARFAESI Act to enforce its security interest over the borrower’s immovable property i.e. all the piece and parcel of property along with plant, machinery, furniture and fixture situated at the Industrial Land having land area of 10.73 acres in Industrial Area in Khatha No. 612, J.L. No. 26 having Plot Nos. 925, 964, 965, 966, 967, 968, 969, 971, 972, 973, 974, 978, 980, 981, 982 and 983, Mouja- Nakrajuria, P.O. and P.S.- Salanpur, District-

Paschim Burdwan, West Bengal.

In furtherance of such measures, respondent no. 2 issued first auction notice dated 11th August, 2024 for auction sale of the secured asset to be held on 13.09.2024. The first auction notice was published in “Financial Express” newspaper (English) and one prominent Bengali vernacular newspaper, both having wide circulation in the State of West Bengal. The first auction sale could not materialise as the respondent bank had withdrawn the said auction notice vide Withdrawal of Sale Notice dated

28.08.2024.

Thereafter, the respondent bank published the second auction notice on 08.09.2024 for the auction sale of the secured assets to be held on 09.10.2024. The Second Auction Notice was also published in widely circulated English language newspaper, viz. “Financial Express” and also a vernacular newspaper, being a Bengali daily having wide circulation in the State of West Bengal. The second notice also could not culminate into sale as the respondent bank had cancelled the auction sale.

The respondent bank issued the third public notice which was published on 15.02.2025 in an English daily “Echo of India” (Kolkata Edition) and in “Arthik Lipi”, a vernacular newspaper in Bengali. In the said auction process, the M/s Maithon Infrabuilt Private Limited participated and the secured assets were sold in favour of the M/s Maithon Infrabuilt Private Limited. Thereafter, a sale certificate under Section 9(6) of the Security Interest (Enforcement) Rules, 2002 was also issued in favour of M/s Maithon Infrabuilt Private Limited.

It is the contention of the learned senior counsel for the petitioner that he is interested in purchasing the secured assets, however, the respondent bank issued public notice in a newspaper which does not have wide circulation in the locality. The first two auction notices were issued in “Financial Express” whereas the third one has been issued in two obscured newspaper - “Echo of India” and “Arthik Lipi”. It is his allegation that neither “Echo of India” nor “Arthik Lipi” is a newspaper of general prominence or wide circulation in Kolkata (or the concerned locality) and thus, the said publication is in violation of proviso to Rule 8(6) of Security Interest (Enforcement) Rules, 2002. He further contended that as a result of such lack of proper publicity and notice, the e-auction held pursuant to the Third Auction Notice had no competitive participa