IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA CWP No.4683 of 2023 Decided on: 16.09.2023.

Vineet Kapur ...Petitioner Versus State of Himachal Pradesh & Ors.

...Respondents Coram:

HON’BLE MR. JUSTICE TARLOK SINGH CHAUHAN, JUDGE HON'BLE MR. JUSTICE RANJAN SHARMA, JUDGE WHETHER APPROVED FrOR REPORTING?

For the petitioner : Mr. Shriyek Sharda, Advocate For the respondents : Mr. Anup Rattan, Advocate General with Mr. Y.W. Chauhan Senior Additional Advocate General for respondents No 1 to 5.

Mr. Sanjay Dalmia, Advocate, for respondent No 6.

Ranjan Sharma, Judge (Oral)

Petitioner, an auction purchaser under the SARFAESI Act, has come up before this Court, seeking the following relief(s):-

(i) A writ in the nature of mandamus directing the respondents No 1 to 5 to register the sale certificate dated 20.06.2023, (Annexure P-2), issued by the Indian Bank selling the property in question, in favor of the petitioner, may kindly be issued.

(ii) A writ in the nature of mandamus directing the respondents No.1 to 5 to enter the name of the petitioner as Owner of the property in question, in the revenue records, having been purchased by fthe petitioners in an auction oconducted by a Syndicate Bank, under the provisions of the SARFAESI Act, 2002 may kindly be rissued.

(iii) A writ in the nature of mandamus directing the respondents No1 to 5 to remove the red entries/government C dues made in the revenue entries/

Jamabandi of the property in question due to alleged outstanding amount of State Taxes and Industrial (Respondent No.4 & 5) may kindly be issued.

2. FACTUAL MATRIX.

2(i). The background matrix of the case is that M/s Shivani Convenience Foods Pvt. Ltd {“here-in-after referred to as “Erstwhile Borrower-Original Leasee}” raised a loan from the Respondent No 6-Indian Bank. For securing loan, the borrower aforesaid, equitably mortgaged its properties i.e. parcel of leased hold rights on land and building comprising of Semi-Built-up area, of 75406 Sq ft, approx. in Plot no. 15, measuring 7770 Square Mete.rs, situated at EPIP Phase-I, Jharmarji, Baddi, District Solan, Himachal Pradesh.

2(ii). The borrower, M/s Shivani Convenience Foods Pvt. Ltd, handed over the originafl sale/lease deeds of mortgaged to the Respondent Bank. Accordingly, the loan facility was availed but since the aforesaid borrower failed to repay the loan therefore, the Respondent Bank declared the loan accountu of the borrower as NPA (Non-Performing Asset).

2(iii). C Consequent upon the borrowers account having been declared as NPA, the Respondent No 6-Indian Bank hinitiated the proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (here-in-after referred to as H ‘SARFAESI Act’), by issuing notice under Section 13(2) to the borrower as well as the guarantors, asking them to repay the loan amount. Despite notice, once the loan amount, remained unpaid, therefore, the Respondent bank issued a notice, under Section 13 (4) of Act, to take possession of the mortgaged property in question and then to ensure repayment of loan, by putting the aforesaid property to auction under the Act. Accordingly, the Stressed Asset Management Branch of the Respondent Bank issued .an E-auction Sale Notice dated 25.05.2023, Annexure P-1, whereby, the reserve price of the property in question was Rs. 7,17,00,000/- (Rs Seven crores and seventeen lakhs only). The E-auction sale notice also mentioned that there were ‘no encumbrances’ on thoe property intended to be put for auction, which was fixed for 15.06.2023.

2(iv). The Petitioner-Vineet Kapur participated in the E-auction on 15.0u6.2023 and the Respondent Bank declared the petitioner as the successful bidder, with highest bid amount of Rs 7,90,00,000/- (Rs Seven crores and ninety lakhs only). On deposit of the total bid amount, the bank issued Sale Certificate dated 20.06.2023, (Annexure P-2) in favor of the petitioner-auction purchaser herein. It was reiterated in the Sale Certificate t