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TMI Blog2016 (9) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... ction sale notice dated 16.11.2015 without duly following the procedure prescribed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity the SARFAESI Act), particularly in collusion with the 2nd respondent, as arbitrary and illegal. 2. Heard Sri C. Raghu, learned Senior Counsel on behalf of Sri T. Rajinikanth Reddy, learned counsel for the petitioner, and Sri B.S.S. Prasad, learned Standing Counsel for the State Bank of India; and Sri M.V. Suresh, learned Senior Counsel on behalf of Sri G.V. Srirama Murthy, learned counsel for the 2nd respondent. 3. At the very outset, we need to observe that the plea taken by Sri M.V. Suresh on behalf of the 2nd respondent, that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan as provided for under Section 13 of the SARFAESI Act. Under sub-section (2) of Section 13 of the SARFAESI Act, the secured creditor is required to draw a demand notice calling upon the defaulting borrower to pay the entire outstanding liability. Accordingly, a notice was drawn under sub-section (2) of Section 13 of the SARFAESI Act on 30.11.2011 calling upon the petitioner herein to liquidate the outstanding liability of Rs. 4,38,47,732/- within a period of 60 days from the date of receipt of the said notice. It appears that the petitioner paid certain amount and got the loan account regularized. Once again, the petitioner has committed default. Hence, the Bank has again classified the loan account as Non-performing Asset on 19.01.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Recovery Appellate Tribunal at Kolkata, and the appeal preferred by it bearing No.48 of 2014 was dismissed by order dated 04.12.2014, upholding the view taken by the Debts Recovery Tribunal, Visakhapatnam. That is how, on the second occasion, the sale by e-auction mode has to be initiated once again. A sale notice dated 16.11.2015 was issued, it was got published in Hindu Newspaper of Issue dated 18.11.2015. The auctions were conducted on 23.12.2015 between 11.30 a.m. to 12.30 p.m. The Reserve Price was fixed as Rs. 3.60 Crores and the Earnest Money required to be deposited was Rs. 36,00,000/-, being 10% of the upset price. The bid increment amount was fixed at Rs. 10,000/-. In the auctions so conducted, the 2nd respondent once aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is a settled principle of law and if one really requires an authority, the ratio laid down by the Apex Court in MATHURALAL vs. KESHAR BAI AND ANOTHER AIR 1971 SC 310 , last 4 lines of para-15, and para-16 is a complete answer. This apart, the Parliament has also noticed this valuable right of the mortgager and hence incorporated the same in the form of sub-section (8) of Section 13 of the SARFAESI Act, which reads as under: 13. Enforcement of Security Interest :- (1) to (7) (8) 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 asset shall not be sold or transferred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the securitization measures, may also have to be tendered. 9. Hence, apart from repayment of Rs. 3,60,10,000/-, which is the price offered and paid by the 2nd respondent herein for the secured asset, which was sold by the 1st respondent on 23.12.2015, the petitioner shall also pay the securitization expenses incurred by the bank and also such expenses in the form of compensatory costs to the 2nd respondent for the monies deposited by him in the form of interest, not exceeding @ 9% per annum, on or before 09.05.2016. The 1st respondent and/or State Bank of India, Main Branch, Srikakulam, shall not register the Sale Certificate already issued in favour of the 2nd respondent with regard to the secured asset sold on 23.12.2015. Should the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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