N S SURESH Vs. AUTHORISED OFFICER VIJAYA BANK

JUDGEMENT

(1.) Borrower has challenged the e-auction notice, dated 2/2/2018, which is extracted hereunder:-

(2.) Contentions have been raised that the Bank has issued a notice, dated 3/3/2015, under Section 13 (2) of the SARFAESI Act, 2002, demanding a sum of Rs.28,01,670.94/-, together with interest. Bank has also obtained an order, in Crl.M.P.No.6540 of 2015, dated 25/11/2015, under Section 14 of the SARFAESI Act, 2002, from the learned Chief Metropolitan Magistrate, Chennai, for taking possession of the mortgaged property and Bank has also taken physical possession of the said property, on 20/1/2018, as per the orders of the learned Chief Metropolitan Magistrate.

(3.) Bank has issued a e-auction notice, on 24/7/2015, describing the outstanding amount, as Rs.28,73,613.94/- and fixed the reserve price, as Rs.65,00,000/-. Auction did not take place. Now, in the instant auction notice, dated 2/2/2018, the Bank has grossly reduced the reserve price to Rs.48,00,000/-, fixing the e-auction, on 17/2/2018. Contending inter alia that the Bank has not followed the procedure, as per Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 and that reduction of the upset price, is erroneous and clear 30 days notice has not been given, instant writ petition has been filed, to quash the e-auction notice. Added further, the petitioner has contended that Bank can wait for three months, for realisation of the entire debts payable by the petitioner, with interest.