C NATARAJAN Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) Challenge in this writ petition is to the letter dated 24.10.2017 issued by State Bank of India, Coimbatore, respondent No.1, forfeiting a sum of Rs.30,75,000/-, 25% of the bid amount, paid by the auction purchaser/writ petitioner.

(2.) Short facts leading to the filing of the writ petition are that the writ petitioner is carrying on business under the name and style of M/s.Stencil Apparels. He was in search of suitable additional accommodation and machinery for expanding his business. At that time, he saw an advertisement for e-auction sale notice dated 208.2017 of the plant and machinery (dying and printing) issued by the first respondent/bank herein.

(3.) He further contended that the plant and machinery sought to be sold in the public auction was owned by the second respondent herein, who has defaulted in repayment of the loan dues to the first respondent. On satisfying with the plant and machinery to be sold and the reserve price for the same being a sum of Rs.1,22,00,000/-, petitioner participated in the e-auction held on 15.09.2017 and he was declared as the highest bidder, for a sum of Rs.1,23,00,000/- by the first respondent. He paid Rs.30,75,000/- towards 25% of the bid amount by way of RTGS and demand draft, to the first respondent. He was advised to pay Rs.92,25,000/- towards the balance 75% of the bid amount on or before 29.09.2017. Since he could not arrange for the funds from his sources, he wrote a letter dated 27.09.2017 to the first respondent herein, seeking extension of time for payment of balance 75% of the bid amount by 25 days. By letter dated 28.09.2017, the first respondent extended the time for payment of the balance bid amount till 210.2017. When he made the balance amount ready and was about to make the payment to the first respondent/bank, he received a notice dated 10.10.2017 from the DRT, Coimbatore intimating him that M/s.Stallion Knitwear India Private Ltd., Tiruppur, namely the second respondent herein, has filed S.A. No.289/2017 challenging the auction sale and that I.A. No.1930/2017 filed by him for deposit of the sale amount by himself, would be taken up for hearing on 06.11.2017.