1. The present appeal has been filed under section 18 of the Securitization and Reconstruction of financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “The SARFAESI Act”) against the order dated 11.12.2024, whereby the S. A. No. 339/2022 filed by the respondent-borrower has been allowed.

2. Brief facts of the matter are that the respondent No. 1-firm was granted a cash credit facility of Rs. 25 lacs on 14.01.2025 by the appellant-Bank for the purpose of work of contractor and supplier against the mortgage of land situated at Bramhpura, Muzaffarpur. Since the respondent no. 1-borrower did not maintain the financial discipline, therefore, the account was classified as NPA on 31.03.2021 and a demand notice under section 13(2) of the SARFAESI Act was issued for a sum of Rs.28,07,601.26. Since the borrower did not pay any heed to the said demand, therefore, the symbolic possession of the prop0erty in question was taken by the Bank by taking recourse to section 13(4) of the SARFAESI Act and the possession notice was issued on 07.01.2022. The said notice was duly served upon the respondent-borrower and was also affixed at the conspicuous place of the property in question and was also published in two newspapers namely Prabhat Khaber and the Times of India. Thereafter the appellant-Bank issued a sale notice dated 22.08.2022 for auction of the property in question. The said sale notice was also published in two daily newspapers.

3. It appears that the aforesaid proceedings of the Bank were challenged by the respondent-borrower before the Hobn’ble High Court at Patna by filing a Writ Petition being CWJC No. 15054/2022, which was dismissed as withdrawn by the Hon’ble High Court vide its order dated 24.11.2022. Thereafter, the respondent-borrower filed the present S.A. No. 339/2022 challenging the possession notice and sale notice issued by the Bank.

4. It transpires that the appellant-Bank obtained an order dated 21.02.2023 from the District Magistrate, Muzaffarpur under section 14 of the SARFAESI Act, pursuant to which the physical possession of the property in question was taken. However, the said order was challenged by the borrower by filing an interim application No. 166/2023 before the Tribunal below, which was allowed and the S.A. was amended accordingly. The Tribunal below vide order impugned has allowed the S.A. of the respondent No. 1-borrower and set-aside the possession notice and its all subsequent auctions directing the appellant-Bank to return the auction amount along with 10% simple interest. Being aggrieved by the said order, the present appeal has been filed by the appellant-bank.

5. Learned counsel for the appellant submitted that there was a clear and specific averment in the demand notice dated 08.07.2021 issued under section 13(2) of the Act about the redemption clause provided as per section 13(8) of the SARFAESI Act and the Rules framed thereunder. It was further submitted that despite service of demand notice, no effort was made by the respondent-borrower to seek redemption of the mortgaged property by depositing the outstanding amount of the Bank. It is also contended that the respondent also did not file any objection against the demand notice.

6. Learned counsel further submitted that after issuance of demand notice, the appellant-Bank proceeded under section 13(4) of the Act by taking symbolic possession of the mortgaged property by issuing a possession notice dated 07.01.2022 as per Rule 8(1) of the Security Interest (Enforcement) Rules 2002 and copy of the possession notice dated 07.01.2022 along with postal receipts placed as Annexure No. 3 to this appeal.

7. It was further contended on behalf of the appellant that the aforesaid possession notice was duly served upon the respondent-borrower and the same was also affixed at the conspicuous place of the mortgaged property as well as published in the two widely circulated daily newspapers namel