VENKATESWARA ASSOCIATES Vs. CHIEF MANAGER AND AUTHORISED OFFICER

JUDGEMENT

(1.) The Borrowers-M/s.Sri Venkateswara Associates and two other petitioners have challenged by way of the present Writ Petition the order passed by the Debt Recovery Appellate Tribunal, Chennai, on 23.05.2019, allowing the appeal of the appellant-Indian Bank and setting aside the order passed by the Debt Recovery Tribunal-I, Chennai, dated 18.07.2017, in S.A.No.03/2017.

(2.) The learned DRAT has upheld the Sale and Sale Certificate in favour of the Auction Purchasers by the impugned order herein. The relevant observations of the learned DRAT in the impugned order are quoted below for ready reference :

(3.) Mr.B.K.Girish Neelakandan, learned counsel for the petitioners, has urged before us that the learned DRAT has erred in holding that extension of time allowing the Auction Purchasers to pay the remaining price of the property purchased by them besides 25% of the Reserve Price paid by them at the time of auction was proper, which was not done by the competent Committee of the respondent-Bank, but was only by the Authorised Officer, which is contrary to the guidelines issued by the respondent-Bank itself on 03.12.2012. He submitted, that in the absence of proper authorisation from the said Committee, the extension of time beyond three months, as stipulated in Rule 9 (4) of the Security Interest (Enforcement) Rules,2002, was illegal and fatal to the auction proceedings. He drew our attention to the Communication, dated 03.11.2016, and also a letter, dated 16.11.2016, of the respondent-Bank.