HEMALATHA RANGANATHAN Vs. AUTHORISED OFFICER INDIAN BANK

JUDGEMENT

(1.) The collusive sale made by the Authorised Officer, Indian Bank in favour of a person, who was not even a bidder and the conduct of auction proceedings, in spite of the stay granted by this Court, restraining the Bank from proceeding further with the sale and the subsequent action taken by the Authorised Officer, to take possession of the property by approaching the learned Chief Metropolitan Magistrate, Egmore, under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act") without divulging the background facts followed by the issuance of a sale certificate in favour of a total stranger is the sum and substance of this writ petition.

(2.) The order dated 18 October 2010 was challenged before the Debts Recovery Appellate Tribunal (hereinafter referred to as "DRAT"), Chennai in AIR. No. 637 of 2010. During the currency of the interim order of stay granted by DRAT, the Bank issued an auction notice proposing to sell the property on 7 January 2011. This made the petitioner to file a writ petition in W.P. No. 354 of 2011 before this Court challenging the auction proceedings.

(3.) The writ petition came up for consideration on 7 January 2011 and after hearing the counsel for the Bank, the Division Bench was pleased to pass an order directing the DRAT to take up the application in I.A.Nos.1117 and 1118 of 2010 as expeditiously as possible and dispose of the same on or before 18 February 2011. The Authorised Officer was permitted to proceed with the sale, but however, he was restrained from confirming the auction sale.