PR.THANGAMSHIRI Vs. CHIEF MANAGER, PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The prayer made in this writ petition is to quash the order dtd. 20/8/2022 passed by the respondent and to direct the respondent to return the bid amount of Rs.29,31,568.00 to the petitioner.

(2.) The facts, in brief, are as under:

(3.) The respondent filed a detailed counter affidavit, wherein, it is inter alia stated that the petitioner was the successful bidder in the auction held on 15/2/2022 and he paid 25% of the bid amount i.e., Rs.29,31,568.00 and his sale was confirmed by sale confirmation letter dtd. 16/2/2022, by directing him to pay the balance 75% of the bid amount on or before 3/3/2022. The counter affidavit further proceeds to state that the extension of time sought by the petitioner was granted on two occasions for making the balance 75% of the sale amount. However, the petitioner failed to pay the balance amount, but issued a lawyer notice dtd. 16/5/2022 stating that there is an attachment on the subject property by Shriram Transport Finance Company Limited and the same is reflected in the encumbrance certificate and requested the bank to take steps to remove the said attachment. In response, the respondent bank sent a reply dtd. 1/6/2022, stating that the mortgage in favour of the bank was created on 22/5/2019 and the demand notice under Sec. 13(2) of the SARFAESI Act, was issued on 4/2/2020, and the attachment made was only on 17/2/2020, which is subsequent to the bank's mortgage and demand notice. However, the petitioner did not pay the remaining 75% of the bid amount, despite the grant of extension of time till 13/5/2022. Therefore, the bank concluded that it had no other option, except to re-auction the subject property and to forfeit the EMD amount already deposited by the petitioner. Thus, according to the respondent, the writ petition filed by the petitioner is liable to be dismissed.