B P SRINIVAS RAJU Vs. INDIAN BANK

JUDGEMENT

(1.) The petitioner participated in the auction proceedings conducted by the respondent-Indian Bank, under the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI ACT'), wherein the immovable property belonging to one H.S.Gangadhara, who stood as a guarantor to the borrower viz., M/s.Matrix Buildtech. Designers Pvt. Ltd., was brought to sale. The auction notice was issued on 16.12.2010. The reserve price fixed for the sale of the property was Rs.150.00 lakhs.

(2.) It is an admitted fact that in the advertisement issued by the respondent-Bank, it was stated that the property was a converted land. The petitioner participated in the auction and deposited Earnest Money Deposit ('EMD') amount of Rs.15.00 lakhs with the respondent-Bank. The property that was put to auction was land bearing Sy.No.255/1 of Hesaraghatta Village, Hesarghatta Hobli, Bangalore North Taluk, measuring about 3 acres 9 guntas. On 18.01.2011, the tenders were opened and the petitioner was declared as the highest bidder. As required, the petitioner deposited Rs.23,25,000/- as part of 25% of the total bid amount. The total auction amount that was bid by the petitioner is Rs.1,53,00,000/-. As on 18.01.2011 the petitioner had deposited 25% of the bid amount i.e., Rs.38,25,000/-. It is also an admitted fact that since there was an order of stay granted by the Debt Recovery Appellate Tribunal (for short 'DRAT') operating against the respondent- Bank, the Bank was not in a position to confirm the sale or issue the sale certificate.

(3.) It is submitted that the petitioner deposited the entire bid amount of Rs.1,53,00,000/-, voluntarily, with the respondent-Bank, as on 06.04.2011. It is also an admitted fact that even before the auction was conducted, the respondent-Bank had approached the Karnataka Appellate Tribunal, at Bangalore, challenging the order passed by the Special Deputy Commissioner, Bangalore District, in case No.ALN/SR/NAH/60/2009-2010 dated 20.03.2010, whereby the order of conversion of the land in question had been cancelled.