K KAILASAM Vs. AUTHORISED OFFICER; AMBALAVANAN

JUDGEMENT

(1.) Introductory:

(2.) The petitioner availed financial assistance from SAF Branch, Canara Bank. The residential property of the petitioner was given as security by creating equitable mortgage. Since the petitioner suffered loss in Horticulture business, the loan amount was not repaid within the time granted by the Bank. The Bank initiated proceedings under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act"). The auction notice issued by the Bank was challenged before the Debts Recovery Tribunal, (hereinafter referred to as "DRT"), Coimbatore in S.A.No.65 of 2009. The proceedings in S.A.No.65 of 2009 was dismissed.

(3.) The Bank issued a fresh sale notice on 22 January 2010 fixing the auction on 25 February 2010. The petitioner deposited a sum of Rs.2.50 lakhs on 24 February 2010. The Authorised Officer postponed the sale without indicating any particular date. The auction was subsequently conducted on 5 March 2010, without issuing fresh notification. There was only one bidder. The bid submitted by the second respondent was accepted by the Bank. The petitioner unsuccessfully challenged the sale proceedings in S.A.No.34 of 2010.