Appeal No. R-32 of 2014. Case: Shashikala Sharma Vs Allahabad Bank and Ors.. Allahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals)

Case NumberAppeal No. R-32 of 2014
CounselFor Appellant: D.N. Awasthi, Advocate and For Respondents: M.K. Srivastava, Advocate
JudgesV.K. Mathur, J. (Chairperson)
IssueCode of Civil Procedure, 1908 (CPC) - Order XXI Rules 84, 85, 86; Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Sections 13(2), 13(4),13(8), 17, 18
Judgement DateJanuary 15, 2016
CourtAllahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals)

Judgment:

V.K. Mathur, J. (Chairperson)

1. The present Appeal has been preferred by the appellant under Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act') against the order dated 6th March, 2014 passed by the learned DRT, Allahabad in S.A. No. 97/2010, by which the securitization application filed by the appellant was dismissed. The brief facts of the present case are that the appellant is the borrower/mortgager who had taken the loan from the respondent No. 1 - Bank totalling Rs. 9.80 lacs which was sanctioned on 15th January, 2007 towards the purchase, construction and renovation of house. The appellant failed to repay the instalments regularly to the respondent-Bank, therefore, the respondent-Bank issued a notice dated 18th April, 2009 under Section 13(2) of the SARFAESI Act demanding a sum of Rs. 12,51,820/-.

2. It is further stated that since the appellant did not regularize their account, therefore, the respondent Bank initiated the recovery proceedings against the appellant by taking recourse to Section 13(4) of the SARFAESI Act which was published in the newspaper on 19th June, 2010. The sale notice was issued on 14th June, 2011 which was published in two daily Newspapers on 18th June, 2011 scheduling the auction of the mortgaged property on 22nd July, 2011. The public auction took place on 22nd July, 2011 in favour of the respondent No. 2 for a sum of Rs. 9,88,000/-. The appellant filed the Securitisation Application under Section 17 of the SARFAESI Act before the learned DRT, Allahabad challenging the auction process wherein the application was dismissed.

3. Aggrieved by the order dated 6th March, 2014 passed by the learned DRT, the appellant has filed the present Appeal before this Tribunal under Section 18 of the SARFAESI Act.

4. The learned Counsel for the appellant-Borrower submitted that the learned DRT has erred in dismissing the securitization application of the appellant. The appellant was ready to pay the dues of the Bank. It was averred that there is violation of mandatory Rule 9(3) of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as the 'Rules') and the respondent No. 2-Auction Purchaser had not paid 25% of the sale price immediately by cash on the date of auction but the same was paid by cheque which was encashed on the next date of auction.

5. It was further stated that the mortgaged property was auctioned...

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