SURESHBHAI JIVABHAI PATEL Vs. BANK OF BARODA

JUDGEMENT

(1.) This application is filed by the applicant who is the original petitioner before this Court in the main petition being Special Civil Application No. 3524 of 2018 restraining the respondent Bank from continuing with the process of e- auction of the property in question.

(2.) The case of the applicant is that he is a purchaser of part of the properties of Newton Engineering and Chemicals Limited. The seller - Newton Engineering and Chemicals Limited is declared a defaulter and securitization proceedings have been undertaken. SARFAESI Act has been instituted by the Bank. In the petition, the case of the petitioner is that it had entered into a Memorandum of Understanding with the defaulter/seller and purchased part of the property by way of such Memorandum of Understanding. In consideration of such sale/Memorandum of Understanding, the petitioner - applicant has transferred an amount of Rs. 3 crores in the cash credit account of Newton Engineering and Chemicals Limited showing a bona fide intention that it would honour the loan commitment towards the bank for the purchase of properties for which Newton Engineering and Chemicals Limited had defaulted. It was in this context while issuing notice on 05.03.2018, this Court passed the following order:

(3.) Today, Civil Application has been filed because the bank has issued auction notice by which the properties of the principal borrower i.e. Newton Engineering and Chemicals Limited are said to be auctioned on 11.03.2020.