AJMAL K.V Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) The petitioners in these writ petitions are auction purchasers who had purchased secured assets which were put for sale by the 1st respondent-Union Bank of India. The petitioners deposited the entire auction amount. The 1st respondent-Bank, however, granted One Time Settlement facility to the borrowers and cancelled the sale in favour of the petitioners.

(2.) In respect of the e-auction sale that was conducted on 21/12/2022 by the 1st respondent-Bank, certain applicants, who mortgaged the properties in question to the Bank, approached the Debts Recovery Tribunal-I, Ernakulam filing SA Nos.414/2022 and 415/2022, assailing the e-auction sale notice bearing reference No.RO/KOZ-SALE/2022-2023. In the said applications, the Tribunal recorded that e-auction sale was conducted on 21/12/2022 in favour of the petitioners. The Tribunal initially passed interim orders staying confirmation of the e-auction sale. The SAs were amended challenging the e-auction sale conducted on 21/12/2022.

(3.) The SAs were taken up for hearing on 20/6/2023. The petitioners in the SA filed affidavit stating that proposal submitted by the 1st respondent-Bank for One Time Settlement has been accepted by the Bank as per sanction order dtd. 8/5/2023 and that the Bank has decided to discontinue recovery proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The applicants requested the Tribunal to pass orders on sanction of One Time Settlement Scheme and closure of SAs in view of the OTS sanction. The Tribunal dismissed the SAs stating that the SAs have become infructuous in view of the sanctioning of OTS by the 1st respondent-Bank.