PALPAP ICHINICHI SOFTWARE INTERNATIONAL LIMITED Vs. INDIAN BANK

JUDGEMENT

(1.) This case is a classic example of misuse of the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 by the secured creditor, by purchasing the secured asset in the absence of bidders, after reducing and refixing the market value and upset price, notwithstanding the offer made by two bidders in the earlier auction quoting substantial amount.

(2.) The petitioner challenges the sale notice dated 21 April, 2010 and the subsequent sale certificate issued in favour of the respondent Bank on 9 July, 2010 on the ground that the Bank deliberately reduced the market value and the upset price of the secured asset for the purpose of snatching away the valuable property for a paltry sum.

(3.) The petitioner is a Software Development International Company started in the year, 1997. The petitioner provides services in the Internet, Wireless, ERP and E-Government Technologies for Japanese Companies and Indian Educational Institutions including Anna University, Dr.M.G.R. Medical University, Stanley Medical College, Kilpauk Medical College and JIPMER Medical College at Pondicherry. The petitioner, for the purpose of their business, took financial assistance from the respondent. Since the petitioner company suffered losses on account of general recession, the loan amount was not re-paid as per schedule. This resulted in initiating action by the Bank to recover the amount.