SRINIDHI STONE CRUSHERS Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) The first petitioner is a proprietorship concern of the second petitioner, engaged in the business of stone crushing since the year 2004. The petitioners are before this Court assailing the orders of the Debts Recovery Tribunal, (for short 'DRT') Bangalore, in S.A.No.671/2012 and the Debts Recovery Appellate Tribunal at Chennai in R.A.(S.A.)Nos.58/2017 and 59/2017.

(2.) The petitioners are borrowers from the first respondent-Bank. The petitioners had availed overdraft facility of Rs.5,00,000/- and FSL facility/term loan of Rs.30,00,000/-. In that regard, the petitioners had mortgaged property bearing Site No.93, Doddakallasandra, Uttarahalli Hobli, Bangalore South Taluk, measuring 10192 sq. ft., in favour of the first respondent-Bank.

(3.) On default, the Bank initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act', 2002). The Bank took possession of the mortgaged property on 28.09.2011. A tender cum auction sale notice was published by the Bank on 18.09.2012, in two leading newspapers. In terms of the auction notice, the auction was conducted on 31.10.2012 and respondents No.2 and 3 were declared successful bidders, having offered Rs.1.35 crores for the mortgaged property. 25% of the sale price was remitted by respondents No.2 and 3 on 31.10.2012. The Bank called upon the successful bidders to pay the balance sale consideration within 15 days. On 13.11.2012, respondents No.2 and 3 tendered a cheque for the balance consideration, along with a covering letter dated 13.11.2012. The first respondent- Bank issued an acknowledgement dated 15.11.2012, informing respondents No.2 and 3 of having encashed the cheque. However, the successful bidders were informed that the sale confirmation will be subject to the application filed by the petitioners herein and pending before the DRT.