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2015 (5) TMI 12 - DELHI HIGH COURT

2015 (5) TMI 12 - DELHI HIGH COURT - TMI - Possession of subject property - Enforcement of security interest - first respondent was the owner of the subject property during the relevant period when on 16.05.2003 he, along with another, approached the third respondent for a housing loan - lender invoked the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 by initiating action under Section 13 classifying the loan account as Non .....

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sued by the secured creditor (giving requisite details of the amount due and the secured assets in which respect the enforcement is intended) and addressed to the borrower-in-default requiring him 'to discharge in full his liabilities' within 60 days. On the expiry of the said period of 60 days calculated 'from the date of notice' if the default continues, the secured creditor acquires the title to proceed further. - Upon being served with a notice under section 13(2), the borrow .....

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he secured asset of the borrower in terms of section 13(4A), with the aid of section 14, itself does not immediately lead to the realization of the money due from the borrower; the secured creditor, having taken over the possession of the secured asset, must take certain further steps in the 'manner' prescribed, inter alia, in terms of section 13(12), read with section 38 in the form of the Security Interest (Enforcement) Rules, 2002 to sell the property. - For bringing the property to s .....

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section 17 of SARFAESI Act of the first respondent, the DRT by its order dated 30-11-2010 returned findings to the effect that the representation submitted by the first respondent, under section 13(3A) had not been disposed of and that mandatory requirement of rule 8(1)(2) of the Security Interest (Enforcement) Rules, 2002 had not been complied with. It found fault with the classification of the account of the first respondent as NPA observing that this had been done 'without application of .....

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r fact that the sale had been confirmed by adding just one rupee over and above the reserve price. It held the entire proceedings under section 13(2) and 13(4) undertaken by the third respondent as 'illegal and invalid'. While setting aside the action under SARFAESI Act, the third respondent was given liberty to proceed afresh for recovery of its outstanding dues after following the due procedure of law. In view of this result of the application under section 17 of the first respondent, .....

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hts were, thus, violated. In the fact-situation noted above, the transfer of his property by way of auction-sale in favour of the fourth respondent was wholly impermissible, unjust and illegal. The manner in which the authorized officer of the third respondent went about putting the property to sale was, to say the least, irresponsible and arbitrarily in flagrant violation of statutory provisions, hardly the conduct expected of a 'trustee'. The petitioner may have been a bona fide purcha .....

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been using the subject property for her residence. Undoubtedly, the auction-sale in favour of her predecessor-in-interest having been set aside, she has no subsisting right, title or interest left in the subject property. As a consequence of the auction-sale being set aside the petitioner (bona fide purchaser) faces the prospect of losing the property. She, however, cannot be denied the value of the improvements made by her in the property after acquiring it for consideration. The spirit of sec .....

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be arranged on the basis of the current market value of the subject property. The current market value would undoubtedly include the value of the construction which was carried out by the petitioner from her own resources. The petitioner would need to be compensated appropriately for the value addition made by her to the subject property after she had purchased it from the fourth respondent on 13-12-2007.

While upholding the directions of the DRT and DRAT in setting aside the auction .....

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2011 - Dated:- 20-3-2015 - MR. S.RAVINDRA BHAT AND MR. R.K.GAUBA, JJ. For The Petitioner : Mr.Rishi Malhotra and Mr.B.Veeraswamy Raju, Advs. For The Respondent : Ms.Manju Bhagat, Adv. for Mr. Vineet Bhagat, Adv. for R-1., Mr.Vinod Trisal, Adv. for R-2 and R- JUDGMENT MR. JUSTICE R.K.GAUBA 1. The petitioner seeks to invoke the civil writ jurisdiction of this court praying for a writ in the nature of certiorari or any other writ for quashing the order dated 28.04.2011 passed by Debts Recovery Appe .....

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property during the relevant period when on 16.05.2003 he, along with another, approached the third respondent ( the secured creditor ) for a housing loan. The loan of ₹4,50,000/- was sanctioned against equitable mortgage created in respect of the subject property. The loan amount was re-payable over a period of 15 years with equated monthly installment (EMI) settled at ₹4,919/-. It has been the case of the borrower (the first respondent) that only an amount of ₹2 Lacs was dis .....

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been disbursed and so the EMIs calculated on the total disbursable amount were not payable and thus the loan amount could not have been classified as NPA. 4. On 13.03.2006, on an application moved by the secured creditor under Section 14 of SARFAESI Act, the District Magistrate, Hissar passed an order directing Superintendent by Police Hissar to provide police assistance for the possession of the subject property to be taken over. It is claimed that after possession had been taken over, inter al .....

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urth respondent ( the auction-purchaser ) by sale deed executed and registered on 13.12.2007 and accordingly had taken over the vacant physical possession thereof. She claims that after purchasing the property, being in immediate need, she carried out construction and started using it as residence. 5. On 15.02.2008, a securitization application registered as SA No. 24/2008 was filed by the first respondent (borrower) under Section (17)(1) SARFAESI Act before Debt Recovery Tribunal, Chandigarh (D .....

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nt were not mentioned in the notice under Section 13(2); the possession notice/sale notice was not published in the vernacular language; the representation sent in response to notice under Section 13(2) of SARFAESI Act had not been disposed of; the determination of reserve price (₹3,00,000/-) and the auction sale price (₹3,00,001/-) was depressed; and since the valuation of the plot at the time of grant of loan was ₹4,50,000/- and also because construction was carried out there .....

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alia, on the grounds that the application under Section 17 SARFAESI Act was filed beyond the period of limitation of 45 days from the date of the measures under Section 13 (leading to the public auction) was not maintainable and also urged that she was a bona fide purchaser from the auction-purchaser. She questioned the truthfulness of the contention of the borrower stating he was not in possession of the subject property since possession had been taken over much earlier in the course of process .....

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r was allowed by DRT by its order dated 30.11.2010. She contends that the objections raised, inter alia, by the petitioner mainly on the plea of she being successor-in-interest of a bona fide purchaser were repelled. She contends that the objections were not properly adjudicated upon. The petitioner and the secured creditor (LIC Housing Finance Ltd.) appealed before the DRAT but without success. 9. The writ petition at hand was entertained by this court by order dated 05.08.2011 whereby rule nis .....

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dent questioned the maintainability of the writ petition before this court on the ground that there is no territorial jurisdiction. This issue was considered by another Division Bench of this court on 29.01.2014 when the respondent gave up the objection on the issue of territorial jurisdiction, inter alia, in light of the decision of the Supreme Court in Kusum Ingots & Alloys Ltd. v. Union of India and Anr., (2004) 6 SCC 254 and instead raised the question of forum non-conveniens. The submis .....

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d before the Punjab and Haryana High Court, therefore this court ought not to entertain this petition any further. Two issues arise at this point. One is the issue of territorial jurisdiction and the other is of convenience. Insofar as territorial jurisdiction is concerned, it has now been conceded by the learned counsel for the respondent that this court has territorial jurisdiction. Even de hors the concession, we are of the view that this court has territorial jurisdiction to entertain this w .....

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02.2008 when another Division Bench of this court had directed the issuance of Rule DB . In other words this court had exercised its discretion to hear this matter. This point had already been taken in the counter affidavit filed on behalf of the respondent No.1 at the point of time when rule DB was issued. Therefore, there is no occasion for the respondent to raise the issue of exercise of discretion of this court to entertain this petition on the ground of convenience/inconvenience of the part .....

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inal hearing and disposal, the same contentions were re-agitated, now placing reliance additionally on Sterling Agro Industries Ltd. v. Union of India 181 (2011) Delhi Law Times 658 (5 Judges Bench), and two other decisions rendered by learned single judges viz. Rattan Singh Associates (P) Ltd. v. Gill Power Generation Company Pvt. Ltd. 136 (2007) Delhi Law Times 629 Delhi High Court and Chinteshwar Steel Pvt. Ltd. v. Union of India LPA 801/2012 (decided on November 26, 2013) first in the contex .....

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e permissibility for High Court to refuse to exercise its discretionary jurisdiction by invoking doctrine of forum conveniens on a petition preferred under Articles 226/227 of the Constitution of India. The said case is no authority to support the contention that the High Court is unexceptionally bound to refuse to exercise the discretionary jurisdiction for such reasons. 14. In our view, the law laid down by the Supreme Court in Kusum Ingots & Alloys Ltd. (supra) governs the issue. It is we .....

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(supra) was reiterated by Supreme Court in Canon Steels (P)Limited v. Commissioner of Customs (2007) 14 Supreme Court Cases 464. The objection based on the doctrine of forum non-conveniens having already been rejected, the issue cannot be allowed to be re-opened. 15. The first respondent (borrower) defends the impugned orders of the DRT and the DRAT on the application under Section 17 SARFAESI Act on the ground that the entire process was vitiated and the proceedings under Section 13 SARFAESI Ac .....

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been so held by the authorities below. It is argued that the respondent bank (secured creditor) not having challenged the impugned orders, the petitioner, a third party which had stepped into the property consequent upon such sale as has been held to be effected pursuant to invalid proceedings cannot be allowed to continue to hold onto it to the detriment of the right, title or interest of the original owner. 16. Per contra, the petitioner relies on Sadashiv Prasad Singh v. Harender Singh, 2014( .....

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by the Recovery Officer in discharge of the debt owed by the borrower in proceedings taken out by the bank (the secured creditor) before the Debts Recovery Tribunal (DRT). The brother of the mortgager had filed objection petition, inter alia, claiming that the attached property had been purchased by him on the basis of agreement to sell. The objection petition, however, was abandoned midway the proceedings. Subsequently, the property was sold by the Recovery Officer in favour of the appellant, a .....

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y proceedings initiated pursuant to recovery certificates issued by DRT. The High Court of Judicature at Patna, in the case of Sadashiv Prasad Singh (supra), set aside the sale of the property by public auction in favour of the appellant primarily on the basis of holding that there had been flagrant violation on Rule 11(2) of the said rules under the Income Tax Act, inasmuch as the objections initially raised by the brother of the mortgager had not been adjudicated upon. While setting aside the .....

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auction-purchaser had bona fide purchased the property. Reliance was placed, inter alia, on Ashwin S. Mehta & Anr. v. Custodian & Ors., (2006) 2 SCC 385 and Janatha Textiles & Ors. v. Tax Recovery Officer & Anr., (2008) 12 SCC 582. 20. In Ashwin S. Mehta & Anr. (supra), the Supreme Court had ruled thus:- In that view of the matter, evidently, creation of any third-party interest is no longer in dispute nor the same is subjected to any order of this Court. In any event, ordin .....

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he ultimate conclusion was that a third party auction-purchaser s interest vis-à-vis the auction property continues to be protected, notwithstanding the fact that the underlying decree subsequently stands set aside. The Supreme Court observed that:- Law makes a clear distinction between a stranger who is a bona fide purchaser of the property at an auction-sale and a decree-holder purchaser at a court auction. The strangers to the decree are afforded protection by the court because they ar .....

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dashiv Prasad Singh (supra) was, thus, held to be uncalled for interference even on ground of equity because the auction-purchaser was a bona fide purchaser for consideration, having purchased the property in furtherance of a duly publicized public auction. 23. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was enacted to regulate, inter alia, enforcement of security interest , noting in the statement of objects and reasons .....

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s and financial institutions the power to take possession of securities given for financial assistance and sell or lease the same or take over management in the event of default, i.e. classification of the borrower s account as non-performing asset in accordance with the directions given or guidelines issued by the Reserve Bank of India from time to time and, for such purposes, has defined the expression security interest , made incidental provisions including in the nature of remedies in the fo .....

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financial institutions , defined in Section 2(1)(c) and (m) respectively, qualify, as per Section 2(1)(zd), to be treated as secured creditor . 25. Under the general law, by virtue of Section 69 of the Transfer of Property Act, 1882, a mortgagee in certain specified category of mortgages, has the power to sell the mortgaged property in default of payment of the mortgaged money , also without the intervention of the court , subject, however, to compliance with the procedure prescribed in the sai .....

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erned by Section 69. 26. Section 13 of the SARFAESI Act is conceived as the code prescribed for enforcement of security interest by the secured creditors, inter alia, for whose purposes the law was enacted. It opens with non-obstante clause and declares upfront that the provision herein is made, over and above, what is available under the general law through Section 69 and 69A of Transfer of Property Act. 27. Lest there be any doubt left, Section 37 of SARFAESI Act makes it further clear that th .....

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ses, the legislation sets out an elaborate procedure that begins with a notice under Section 13(2) issued by the secured creditor (giving requisite details of the amount due and the secured assets in which respect the enforcement is intended) and addressed to the borrower-in-default requiring him to discharge in full his liabilities within 60 days. On the expiry of the said period of 60 days calculated from the date of notice if the default continues, the secured creditor acquires the title to p .....

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y in the nature of appeal or application. 30. In the event of failure on the part of borrower to discharge his liability in full, in terms of the notice under Section 13(2), the secured creditor is permitted, by Section 13(4), to take recourse to any of the measures indicated in the said clause to recover his secured debt . The measures include taking of the possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realizing the secu .....

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a case to proceed to take possession of a secured asset, after requisite compliance with Section 13, is given the option to approach the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction the secured asset or other documents relating thereto may be situate or found to direct to take, or cause to be taken, such steps as may be necessary to facilitate the possession thereof to be taken for such purposes. 32. Mere taking of possession of the secured asset of the bor .....

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of the Security Interest (Enforcement) Rules, 2002 prescribes the mode of service of the demand notice under Section 13(2). Rule 8 deals at length with the procedure required to be followed, inter alia, for taking possession and sale of immoveable secured assets. 34. What needs to be particularly noted here is that the process commences with delivery of possession notice , prepared in the prescribed format, and served by affixation on the outer door or at a conspicuous place of the property. Th .....

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ction of the secured asset and obtain valuation of the asset from an approved valuer, inter alia, for purposes of fixing the reserved price in terms of Rule 8(5). 35. For bringing the property to sale, the secured creditor (through its authorized officer) is required, by virtue of Rule 8(6), to issue and serve on the borrower a notice of 30 days for sale of the immoveable secured asset . The notice of sale is also required to be given widest possible publicity, including, in terms of Rule 8(7), .....

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of Rule 8(8). In this view, in terms of proviso to Rule 8(6), the sale by public auction or public tender must be preceded by publication of a public notice published in two leading newspapers (at least one in vernacular language) having sufficient circulation in the locality setting out the terms of sale which necessarily would include not only the description of the immoveable property intended to be sold but also the details of encumbrances, the secured debt being recovered, reserve price, t .....

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o the authorized officer but is subject to confirmation by the secured creditor . Detailed provisions are made in the rules as to the period within which the sale price is to be paid or deposited, the minimum period being on or before the 15th day of confirmation of sale in terms of Rule 9(4), which period may be extended. Upon confirmation, necessarily after deposit of the money, the property is delivered by the authorized officer to the purchaser, in terms of Rule 9(9), free from encumbrances .....

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the loop. The objective behind this scheme of things is not difficult to comprehend. The law appreciates that the borrower is bound to be deeply concerned and, thus, might be interested in discharging his liability to the secured creditor otherwise than by having the mortgaged property brought under the hammer, and for such purposes may like to seek redemption. It is with this view that Section 13(8) SARFAESI Act provides as under:- 13(8). If the dues of the secured creditor together with all c .....

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to the remedy of appeal before the Debts Recovery Tribunal (DRT), constituted under RDDBFI Act, in terms of Section 17 SARFAESI Act. As noted earlier, mere non-acceptance of the objection or representation in response to the initial notice under Section 13(2) does not confer the right of challenge through appeal. The remedy of appeal becomes available as soon as effective action, including taking over of possession of the secured asset (and further process in the nature of sale, etc.) commences. .....

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its right to enforce security by bringing the secured asset of the borrower to sale (etc.) must ensure that it has invoked the permissible measures strictly in accordance with the provisions of law and rules made thereunder. In the event of DRT finding the recourse to be in accord with the law, the secured creditor is entitled to proceed further. But, in case the finding of DRT on this score is in the negative, there may be a need to modulate the relief to the affected party in such manner as c .....

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provisions of this Act and the rules made thereunder, and require restoration of the management of the secured assets to the borrower or restoration of possession of the secured assets of the borrower, it may by order, declare the recourse to any one or more measures referred to in sub-section (4) of section 13 taken by the secured assets as invalid and restore the possession of the secured assets to the borrower or restore the management of the secured assets to the borrower, as the case may b .....

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at a proper time and place, of the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and .....

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render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such money. Redemption of portion of mortgaged property.-Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mor .....

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f things, a borrower can tender to the secured creditor the dues together with all costs, charges and expenses incurred by the secured creditor at any time before the property is brought to sale or transfer. In the event of such tender, the statutory mandate is that the secured asset cannot be sold or transferred. All actions in the direction of sale or transfer must stop forthwith. 43. It is against the above backdrop that the Supreme Court in the case of Mathew Varghese (supra), inter alia, ob .....

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of the proceedings initiated under the SARFAESI Act. ... 30. ... by virtue of the stipulations contained under the provisions of the SARFAESI Act, in particular, Section 13(8), any sale or transfer of a secured asset, cannot take place without duly informing the borrower of the time and date of such sale or transfer in order to enable the borrower to tender the dues of the secured creditor with all costs, charges and expenses and any such sale or transfer effected without complying with the sai .....

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d for enforcing recovery) was held to be null and void, it having been brought about without the terms to such effect being settled between the parties in writing in terms of Rule 8(8). The ruling in Mathew Varghese (supra) was reiterated pointing out that the secured creditor having resort to the extreme measures under SARFAESI Act are expected to take bona fide measures , inter alia, to ensure that the borrower is clearly put on notice of the impending sale or transfer so that he can take all .....

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is interest as well. 46. The SARFAESI Act confers upon the secured creditor a right of enforcement of far-reaching import. The secured creditor is spared the rigor of approaching the judicial forums. It does not require intervention of a Court or Tribunal, except, of course, for limited purposes of assistance to take possession (Section 14). In a manner of speaking, the secured creditor has acquired under SARFAESI Act the power to be a judge of its own cause, one it is espousing, prosecuting and .....

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ed creditor towards this end would adhere scrupulously, and without let, in letter and spirit, to the prescribed procedure. Since it is likely that the jurisdiction conferred on the secured creditor to enforce the secured debt may lead to deprivation of the property of the borrower which, by virtue of Article 300-A of the Constitution of India, cannot occur save by authority of law , the Supreme Court in the case of Ram Kishun v. State of U.P., (2012) 11 SCC 511 poignantly observed thus:- 13. Un .....

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ured asset) placed by the law in the hands of the claimant (secured creditor) itself is indeed an extraordinary measure, particularly because it is in the teeth of the principles of natural justice doctrinal rule wherein it that no one shall be a judge of own cause. Such extraordinary power cannot come but with extraordinary responsibility. The entity so authorized must adhere to the prescribed procedure. Departure from the prescribed procedure cannot be countenanced; the concerned Tribunals or .....

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y requirement of Rule 8(1)(2) of the Security Interest (Enforcement) Rules, 2002 had not been complied with. It found fault with the classification of the account of the first respondent as NPA observing that this had been done without application of mind and further that even the notice under Section 13(2) SARFAESI Act was deficient since the factum of the account having been declared NPA or the date of NPA had not been indicated. The DRT upheld the contention of the first respondent with regar .....

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etting aside the action under SARFAESI Act, the third respondent was given liberty to proceed afresh for recovery of its outstanding dues after following the due procedure of law. In view of this result of the application under Section 17 of the first respondent, the DRT declined to go into the objections, inter alia, of the petitioner. 49. The aforementioned findings of fact rendered by DRT were upheld by DRAT in the appeals taken out by the petitioner and the third respondent. Dealing with the .....

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date of the receipt till payment. The DRAT has directed the petitioner to handover the possession of the property to the third respondent within the time specified. On the other hand, the third respondent has been granted the liberty to retain the possession of the property till it is re-auctioned . Both the borrower and the petitioner (successor-in-interest of the auction-purchaser) have been given liberty to participate in such re-auction which is, however, subject to the right of the borrower .....

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indefensible. There are consistent findings recorded by the two statutory forums below that the entire process undertaken by the third respondent under the colour of authority of Section 13 SARFAESI Act was vitiated. The borrower/mortgager did not have sufficient notice at the crucial stages of the process. His rights were, thus, violated. In the fact-situation noted above, the transfer of his property by way of auction-sale in favour of the fourth respondent was wholly impermissible, unjust an .....

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uspect, particularly on account of undervaluation for fixing the reserve price and the consideration for which it was sought to be sold (adding just rupee one to the undervalued reserve price). 52. The case of auction-purchaser under SARFAESI Act cannot be equated with that of an auction-purchaser in a sale monitored by a court of law, particularly when there are reasons to suspect the bona fide of the process by which such auction is conducted. In this view, there cannot be an unexceptional rul .....

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s of the process through which her predecessor-in-interest acquired title. The action under Section 13 SARFAESI Act having been found to be illegal and vitiated, the sale in favour of the fourth respondent and, in turn, in favour of the petitioner, cannot be saved. We have, thus, no hesitation in upholding the directions of DRT, and DRAT, to the effect of setting aside the sale proceedings. But, at the same time, we find that the authorities below have not issued further requisite directions to .....

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The provisions contained in Section 51 and 63A of the Transfer of Property Act are germane to the issue raised. The said provisions of law read as under: 51. Improvements made by bona fide holders under defective titles.-When the transferee of immoveable property makes any improvement on the property, believing in good faith that he is absolutely entitled thereto, and he subsequently evicted therefrom by any person having a better title, the transferee has a right to require the person causing t .....

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cted therefrom, he is entitled to such crops and to free ingress and egress to gather and carry them. 63A. Improvements to mortgaged property.-(1) Where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, been improved, the mortgagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled to the improvement; and the mortgagor shall not, save only in cases provided for in sub-section (2), be liable to pay the cost thereof. (2) .....

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the principal, or, where no such rate is fixed, at the rate of nine per cent per annum, and the profits, if any, accruing by reason of the improvement shall be credited to the mortgagor. 56. The petitioner, after purchasing the property on 13.12.2007 and having raised further construction, has been using the subject property for her residence. Undoubtedly, the auction-sale in favour of her predecessor-in-interest having been set aside, she has no subsisting right, title or interest left in the s .....

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ate in the fresh auction proceedings for conduct of which liberty has been granted by the authorities below to the third respondent (secured creditor). In such fresh auction proceedings, she would be competing against other bidders which may include the borrower, the first respondent. The fresh auction of the property would necessarily have to be arranged on the basis of the current market value of the subject property. The current market value would undoubtedly include the value of the construc .....

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en to retain it till the fresh auction is held), strangely, no time-frame for such further proceedings to be conducted has been specified. With stakes of a third party, a bona fide purchaser from the auction-purchaser, also having come to be involved, some further directions were necessary to balance out the equities. 59. As noted earlier, one of the grievances raised by the first respondent in the SA filed before the DRT was that the representation made in response to notice under Section 13(2) .....

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d DRAT in setting aside the auction sale in favour of the fourth respondent, we direct as under:- (i) The DRT is directed to determine the liability of the first respondent towards the third respondent in the context of loan availed, by adjudicating upon the contentions raised in the SA in such regard. Having regard to the need for expedition, DRT shall render its findings within two months from the date of this judgment. For such purposes, the first respondent and the third respondent shall app .....

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dicate separately the valuation of the super-structure constructed by the petitioner after she had acquired the property by sale deed dated 13.12.2007. The valuer shall also compute the value of the mesne profits payable by the occupant/user, taking into account the current rental value of the subject property. In such valuation proceedings, the petitioner and the third respondent shall be allowed to participate and give requisite inputs; (iii) After the above exercise has been completed, prefer .....

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e thereupon (hereinafter referred to as the amount payable to the petitioner ); (iv) The third respondent shall thereafter offer an opportunity for redemption to the first respondent who will be obliged to deposit with the third respondent, within 15 days of such offer, an amount equivalent to the value at which the subject property has been assessed by the approved valuer or the outstanding dues (the principal loan amount disbursed discounted by amount repaid, if any, with up-to-date interest) .....

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being obliged to make such deposit with the third respondent within four weeks of such offer; (vi) In the event of the petitioner failing to deposit the amount in terms of the preceding clause within the time granted, the third respondent shall proceed to put the property to sale through public auction in accordance with the provisions of SARFAESI Act read with the Security Interest (Enforcement) Rules 2002 wherein the value of the subject property as assessed in accordance with above-mentioned .....

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titioner or a purchaser in the re-auction is confirmed in accordance with the law and rules indicated above; (viii) In the event of the first respondent discharging his liability as above, from out of the amounts deposited by him, the amount payable to the petitioner shall be released to her by the third respondent without delay, not later than 15 days of such deposit; (ix) In the event of the petitioner availing of the offer of sale of the subject property in her favour in terms of the above di .....

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