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2016 (1) TMI 86 - HC - Indian LawsAuction Sale - whether the Fourth Respondent/Appellate Tribunal should have held that the First Respondent/Borrower does not have any right to challenge the ‘Auction Sale’ and the so-called third party purchaser is only vested with the ‘Equitable Right of Redemption’ of the said property? - Held that:- In the instant case, the auction sale notice was published on 09.07.2004 and in Tamil Daily ‘Dina Thanthi’ it was published on 10.07.2004. On 26.09.2008, the fresh auction sale notice was published in Indian Express. As such, there were no irregularities in conducting the sale by the Third Respondent/Bank. Also, it is to be noted that sale notice was sent to all the partners of the First Respondent Firm by the Third Respondent Bank through registered post and that apart, notice was affixed in the premises of the First Respondent and published in newspapers. Dealing with the plea that the properties were sold by the Third Respondent/Bank without obtaining the valuation of the property from the ‘Approved valuer’, the plea of the Third Respondent/Bank is that it had taken the valuation from the ‘Approved valuer’ and on that basis only the ‘Upset Price’ was fixed. Therefore, the contra stand taken on behalf of the First Respondent/Borrower is not accepted by this Court. Insofar as the stand of the First Respondent/Borrower (Firm) is that the Third Respondent/Bank had published the Possession notice only in English Daily and not in Vernacular Language, hence, there is violation of Rule (6) of the Rules, it is to be pointed out that the Third Respondent/Bank in S.A.120 of 2009 before the Debts Recovery Tribunal-III, Chennai, in its order on 09.12.2011 in para 10.12 had stated that the possession notice thus issued by the First Respondent (bank) was served, affixed on the secured assets and also published in two daily newspapers as mandatorily required under Rules 8(1) and (2). It is to be pertinently recalled the words of Robert Frost who said “a bank is a place where they would lend you an umbrella in a fair weather and ask for it back when it begins to rain”. At this stage, one cannot ignore a very vital fact that unless loans are repaid promptly, ‘Money’ will not be under circulation and in fact the Banks/Financial Institutions be in great difficulties. Recently, the members of the Public Accounts Committee of Parliament (Panel) were informed that public sector banks are dealing with 2.55 lakhs crores Non Performing Assets or bad loans which means to 5.2% of total gross advances and the members wanted quick action against defaulters. Also, it is represented on behalf of the Third Respondent/Bank, inspite of sale of properties, the First Respondent/Borrower still owe a sum of ₹ 1,56,72,131.19/-. In the present case, after the confirmation of sale, in favour of the Writ Petitioners and issuance of sale certificates, in Law, the ‘Right of Redemption’ in favour of the First Respondent/Borrower is completely erased. Further, the third party ‘bona fide auction purchasers’ for valuable consideration in the eye of law are to be protected because of the primordial reason that they should not fall a prey to the vicissitudes of fortunes of the numerous proceedings initiated by the First Respondent/Borrower at all forums. As such, the sale of secured assets by the Authorised Officer of the Bank on 13.08.2004 and 09.04.2009, consequent to the issuance of sale notice dated 09.07.2004 and 26.09.2008 are held legally valid by this Court. Instead, the contrary views taken by the Fourth Respondent/Debts Recovery Appellate Tribunal by allowing the said Appeal through its order dated 22.08.2014 are not just, valid and legally tenable one as held by this Court and the same are set aside by this Court to prevent an aberration of justice and to promote substantial cause of justice. Consequently, all the Writ Petitions succeeds.
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