PRAGATI BUILDERS Vs. RAM MURTY PYARA LAL

JUDGEMENT

(1.) These writ petitions have been preferred by M/s Pragati Builders and Promoters and its partners (W. P. (C. ) No. 4441/2011 and 4954/2011) and the Central Bank of India (W. P. (C. ) No. 6141/2011 and 6810/2011) to assail the common order dated 07.06.2011 passed by the Debts Recovery Appellate Tribunal, Delhi (DRAT) in Appeal Nos. 256/2010 (arising out of S. A. No. 50/2005 preferred before the DRT-II by M/s Ram Murty Pyare Lal and Sh. Subhash Aggarwal) and Appeal No. 444/2010 (arising out of S. A. No. 204/2005 preferred before DRT-II by Smt. Shruti Aggarwal, Smt. Anjana Aggarwal and Shri Gaurav Aggarwal). Whereas the petitioners in W. P. (C. ) No. 4441/2011 and 4954/2011 are aggrieved by the direction of the DRAT setting aside the auction sale in their favour, the Central Bank is aggrieved by the direction that the amount deposited by the auction purchasers be refunded with interest @ 6% p. a. from the date of deposit till realization. The factual conspectus may first be noticed.

(2.) M/s. Ram Murty Pyare Lal (a partnership firm) and its partners, late Shri Subhash Kumar and his son Mr. Amit Aggarwal (hereinafter referred to as "the borrowers') availed of credit facility from the Central Bank of India (hereinafter referred to as "the Bank'). This loan was secured by equitable mortgage of property bearing No. BN- 34, Shalimar Bagh West, New Delhi. It appears that the defaults on the part of the borrowers started at an early stage and though the credit facilities were sanctioned on 25.8.2003, the account was declared as an NPA on 31.8.2004.

(3.) The Bank thereafter issued notice under Section 13 (2) of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act') on 9.9.2004 calling upon the borrowers to pay the outstanding amount of Rs. 98,64,986.99 within sixty (60) days. The amount was, however, not paid.