9911796707
TMI Blog2012 (6) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest Act, 2002. 2. A notice under Section 13 (2) was issued to the Petitioners on 20 January 2011 demanding an amount of Rs. 268 crores. The Petitioners raised objections on 14 March 2011 which were disposed of on 12 May 2011. Symbolic possession of the secured assets has been taken on 17 June 2011. The Petitioners have a remedy available under Section 17 of the Act of moving the Debt Recovery Tribunal. In these proceedings the Petitioners have questioned the constitutional validity of Rule 8(5) which reads as follows :- 8(5) Before effecting sale of the immovable property referred to in sub-rule (1) of rule 9, the authorised officer shall obtain valuation of the property from an approved valuer and in consultation with the secured cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act stipulates that if the dues of the secured creditor together with all costs, charges and expenses incurred by him are tendered to the secured creditor at any time before the date fixed for sale or transfer, the secured assets shall not be sold or transferred to the secured creditor and no further steps shall be taken by him for transfer or sale of the secured assets. The object of giving a notice to the borrower under sub-rule (6) of Rule 8 is not only to enable the borrower to exercise the option which is conferred upon him of paying the dues of the secured creditor together with the costs, charges and expenses incurred. Undoubtedly such a right is given to the secured creditor under Section 13(8). The right can be exercised prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 8(6) of the Rules of 2002 appears to be that the borrower gets clear thirty days' notice before the sale takes place. During this period, the borrower can raise objections and can also point out before the appropriate forum as regards the correct and true valuation of the property. The essential purpose of sub-rule (5) of Rule 8 of the Rules of 2002 is to see that there is proper valuation by an approved valuer, who would be considered as an expert, and the view of the secured creditor on the aspect of fixation of reserved price is taken into consideration by the authorized officer. Just because the borrower is excluded from Rule 8(5) of the Rules of 2002 or has no voice at the time when the valuation is fixed and the reserved price is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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