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2018 (9) TMI 925 - MADRAS HIGH COURTWhether the Petitioner in C. R. P. (MD). No. 2332 of 2008 is entitled for the relief sought for and whether the action of the Respondent bank is sustainable in Law? - whether the Petitioner in C. R. P. (MD). No. 535 of 2017 can get the plaint in O. S. No. 797 of 2014 rejected at this stage? Held that:- The bank had not taken any earnest step to settle the dispute by receiving the debt amount especially when the debtor had come forward to deposit the decreetal amount. The bank has even now not furnished any particulars pertaining to the alleged sale said to have been conducted by it. The bank has not filed any documents for this Court to at least have a glance to satisfy itself as to whether the bank followed at least rudimentary principles of auction sale. This shows that the bank is not willing to frankly disclose the facts and it reflects upon the illegal way in which the bank had tried to bring the borrowers property for sale instead of trying to realize the debt. The alleged auction purchasers as stated above have also not taken any earnest steps in spite of the knowledge of the pendency of the Civil Revision Petition. Furthermore the alleged auction purchasers, who are litigation purchasers, may not be entitled to any equity especially as the borrower has taken earnest steps to deposit the decreetal amount. The alleged auction purchaser can be treated only at par with an Pendent lite Purchaser and the alleged sale in favour of the auction purchaser during the pendency of the suit in O. S. No. 33 of 2004 will not confer any right in favour of the alleged auction purchaser beyond the outcome of the suit. In view of the mater it is not even necessary for hearing the said auction purchasers before granting relief to the Revision Petitioners in C. R. P. (NPD). (MD). No. 2332 of 2008. The principles of natural justice will not come into play in this case in view of the above findings and also in view of the exception to the above said rule on the ground of Doctrine of Empty Formality. When this Court finds that the very act of the Respondent bank in invoking SARFAESI proceedings during the pendency of the civil suit is illegal all further actions taken pursuant to such a proceeding will also be null and void and it will not confer any right upon the auction purchaser. This Court is of the view that the impugned order passed by the learned Principal District Judge, Dindigul in I. A. No. 83 of 2008 in O. S. No. 33 of 2004 dated 20. 11. 2008 is liable to be interfered with and accordingly, the same is set aside. The Petitioner in C. R. P. (NPD). (MD). No. 2332 of 2008 is directed to deposit the amount Decreed in O. S. No. 33 of 2004 as modified in A. S. (MD)No. 217 of 2009 after deducting ₹ 3, 00, 000/- (Rupees Three Lakhs) within a period of four weeks from the date of receipt of a copy of this order before the learned Principal District Judge, Dindigul to the credit of the Decree in O. S. No. 33 of 2004 dated 26. 03. 2008. Petition dismissed.
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