GOVIND KUMAR SHARMA Vs. BANK OF BARODA

JUDGEMENT

(1.) Leave granted.

(2.) The appellants herein have assailed the correctness of the judgment and order dtd. 2/7/2018 passed by the Allahabad High Court dismissing the Writ Petition of the appellants, confirming the orders passed by the Debt Recovery Tribunal[DRT] as also the Debt Recovery Appellate Tribunal,[DRAT] whereby the auction sale held in favour of the appellants had been set aside and the appeal was dismissed. Brief facts in nutshell are as follows:

(3.) The firm-respondent no.3, had taken a loan from the respondent no.1-Bank. However, as it went into default, the Bank initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002[SARFAESI Act]. In the said recovery proceedings, the Recovery Officer conducted an open auction. The appellants were the highest bidder. Their bid was accepted and they made good the deposits as per the terms of this auction. Accordingly, a sale certificate was issued in their favour on 30/3/2009. It may be noted here that the appellants were tenants of the borrower in the premises in question which had been put to auction. As such the status of the appellants changed from that of tenants to that of owners after the sale was confirmed and sale certificate was issued.