UNION BANK OF INDIA Vs. VINAY KUMAR JAIN

JUDGEMENT

(1.) Judgment passed by the learned Single Judge in WPC No. 845 of 2020, directing the Secured Creditor / Bank to refund the Earnest Money Deposit (EMD) amounting to Rs.35,88,250/- with interest @ 6% per annum from 21.02.2018 the date of deposit, to the Writ Petitioner / successful bidder in respect of House No.B-76 (pursuant to setting aside the sale by the DRT), is subjected to challenge in this appeal. The challenge in the appeal is confined only to the 'interest' portion, the amount in deposit having already been returned vide Annexure-A/4.

(2.) At the very outset, it is to be noted that the Secured Creditor, who was arrayed in the Writ Petition was the 'Corporation Bank', which came to be merged with the Appellant-Bank namely, the Union Bank of India along with the Andhra Bank as per the relevant proceedings issued by the Competent Authority / Government of India w.e.f. 01.04.2020 as discernible from Annexure-A Notification dated 04.03.2020. Though the writ petition was filed in February, 2020 i.e. before the amalgamation, the Appellant-Bank was never brought in the party array and the proceedings were finalized by the learned Single Judge even without issuing notice to the Corporation Bank, but for getting the factual position ascertained through the learned Assistant Solicitor General (as contended by the Appellant). It is also pointed out from the part of the Appellant-Bank that, though the Appellant-Bank had filed an I.A., seeking to intervene in the proceedings on 14.08.2020, it did not turn to be fruitful and the writ petition came to be finalized without showing the name of the Bank or the counsel in the cause list. This has caused prejudice to the Appellant-Bank insofar as the correct factual particulars, particularly, as per the terms and conditions of the Sale "As is where is and What is there is" condition and that the "EMD will carry no interest" could not be brought to the notice of the learned Single Judge, while directing the amount deposited by the successful bidder to be refunded with interest as mentioned above.

(3.) The sequence of events reveals that Annexure-A/1 Notice was issued by the Secured Creditor / Bank on 12.01.2018 for conducting the e-auction of the scheduled property to be held on 21.02.2018. The 1st Respondent, in his attempt to arrange a permanent place of residence, sought to participate in the proceedings by submitting the bid on 19.02.2018, giving a declaration / understanding as to the terms and conditions. In terms of the tender conditions, 10% of the bid amount had to be deposited as the 'EMD' and accordingly, Rs.13,09,300/- and Rs.10,65,300/- were deposited by him in respect of two houses numbered as B-55 and B-76 situated at Wall Fort City, Bhatgaon, Raipur.