ALLAHABAD BANK Vs. SHIP RAP ANDEY

JUDGEMENT

(1.) This Letters Patent Appeal is directed against the judgment dated 24.07.2019 passed by the learned Single Judge in W.P.(C) No.3984/2018 preferred by the respondent No. 1. By the impugned judgment, the learned Single Judge allowed the said writ petition and held that the respondent No.l/ writ petitioner was entitled to refund of the sale amount of Rs. 1,33,45,000/-. The learned Single Judge also directed that the respondent No. 1 shall be entitled to refund of the expenditure incurred by her one-stamp duty to the tune of Rs.5,30,800/- and a further amount of Rs. 1,33,700/- towards the registration charges in respect of the sale certificate/deed. Respondent No. 1 had raised a certain bill to contend that she had incurred expenditure on renovation of the property in question and, in respect thereof, the appellant bank was directed to appoint a valuer from its panel to assess the value of the work carried out by the respondent No. 1 for renovation of the property in question within eight weeks. The learned Single Judge directed that the amount valued shall be paid to the respondent No.l/ writ petitioner within two weeks of such valuation. The aforesaid amounts of Rs. 1,33,45,000/-, Rs. 5,30,800/- and Rs. 1,33,700/- directed to be refunded to the respondent No. 1 were to carry interest @ 7% per annum computed from the date when the amounts were paid by the respondent No. 1 pursuant to the auction purchase, till the date of refund.

(2.) The background in which the aforesaid reliefs were sought by the respondent No. 1 / writ petitioner, and came to be granted to her, may now be noticed.

(3.) On 08.08.2017, a public notification for e-auction was published by the appellant/ Allahabad Bank in the newspaper containing a list of properties to be made available for auction on 28.08.2017 under the SARFAESI Act, 2002. The list of properties included property No. 40/53, First Floor, Chittranjan Park, New Delhi admeasuring 160 sq. yards. The respondent No. 1 participated in the said bidding process in respect of the said property and gave a bid for Rs. 1,33,45,000/- which was accepted by the appellant and a Sale Certificate was issued in her favour on 04.09.2017. The respondent No. 1 claimed that she took a loan of Rs. 1 Crore carrying interest@ 12% per annum from the ICICI Bank in order to pay the sale consideration. Admittedly, the respondent No. 1 was placed in actual vacant physical possession of the said property by the appellant Allahabad Bank after receipt of the entire consideration.