S. STALIN Vs. THE CHIEF GENERAL MANAGER

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 property at Plot No.370-D, 13th Street, Rajamangalam, Villivakkam, Chennai - 600 049, was subject matter of lien with the respondent, by the borrower K.A.Dhinachandran and Mrs.S.Sundarambal. When the account of borrower became Non Performing Account, the property was brought under SARFAESI proceedings. Respondent issued an e-auction notice dated 12.11.2010 for recovery of a sum of Rs. 36,79,051.99P. Possession was taken by the bank on 12.11.2010.

(3.) Writ petitioner participated in the public e-auction held on 21.08.2013. He quoted a price of Rs. 70,30,000/-. Accordingly, he deposited 25% of the bid amount, i.e. Rs. 17,58,000/- on the same day, with the respondent bank and the respondent bank gave a letter to the petitioner, confirming the sale dated 06.09.2013 stating that the petitioner was declared as the highest bidder for Rs. 70,30,000/- and he has deposited 25% of the bid amount of Sale price Rs. 17,58,000/- and hence sale is confirmed in favour of the petitioner and that the balance amount of Rs. 52,72,000/- shall be paid by the auction purchaser, within 15 days i.e. on or before 04.09.2013 and in default of payment as above, the deposit already made will be forfeited and the property will be resold and all the rights of the auction purchaser shall also be forfeited.