R.SHANMUGACHANDRAN Vs. CHIEF MANAGER INDIAN BANK

JUDGEMENT

(1.) A person, who participated in an auction conducted by the respondent-Bank under the SARFAESI Act, came up with the above writ petition seeking refund of the earnest money deposited by him. However, after the writ petition was filed, the writ petitioner died and his wife and children have been substituted in his place. We have heard Mr.T.Arockiadas, Learned Counsel for the petitioners and Mr.Jayesh B.Dolia, Learned Counsel for the respondent-Bank.

(2.) In respect of credit facilities availed by one K.P.Nagarajan, Proprietor of M/s. L.G. Textiles, in the year 2001, the respondent-Bank initiated proceedings in O.A.No.360 of 2004 on the file of the Debt Recovery Tribunal, Madurai, for recovery of a sum of Rs. 74,98,000/-. Subsequently, the Bank switched over to the SARFAESI Act and issued a demand notice under Section 13(2) on 27.8.2008. It was followed by a possession notice dated 28.02.2009. After taking possession, the Bank issued a sale notice dated 08.5.2009, fixing the auction sale on 15.6.2009. Since there was no bidders, another auction was fixed on 26.02.2010. Even this auction did not materialise. The properties were put up for auction for a third time on 02.8.2010.

(3.) In the auction held on 02.8.2010, the petitioner was declared as the successful bidder in respect of item Nos.1 and 5. In respect of item No. 4, a person by name Karthik was the successful bidder.