KANDI PANDU RANGAN REDDY Vs. UNION OF INDIA

JUDGEMENT

(1.) The present Writ Petition under Article 226 of the Constitution of India is filed challenging the E-auction Sale Notice, dtd. 27/10/2023, issued by the 1st respondent under Rule 8(6) of the Security Interest(Enforcement) Rules, 2002 (for short the Rules"), proposing to sell the mortgaged scheduled properties on 16/11/2023. The present Writ Petition is concerned only with Item Nos.2 and 3 of the impugned notification.

(2.) The respondent-Bank issued E-auction notice, proposing to conduct public auction for the subject properties on 12/9/2023. In the said auction, for Item Nos.2 and 3 of the notification, the petitioner herein emerged as the successful bidder and he paid 25% of the bid amount out of the total sum of Rs.1,50,32,000.00 on 12/9/2023 and 13/9/2023. Vide letter, dtd. 13/9/2023, respondent-bank issued confirmation order and instructed the petitioner to pay the balance 75% on or before 27/9/2023. By way of representation, dtd. 27/9/2023, the petitioner herein requested the Respondent-Bank to grant extension of time by 45 days for depositing balance of 75% of bid amount. According to the petitioner, the respondents did not give any response to the said representation though the said representation was acknowledged. It is also stated that subsequently also a representation, dtd. 27/10/2023 was made with a request to grant time to deposit the balance amount. Vide letter, dtd. 31/10/2023, the respondent-bank cancelled the bid and forfeited 25% of the bid amount paid by the petitioner stating that as per the auction notice, the successful bidder ought to pay 75% of the bid amount within 15 days from the date of auction and despite 30 days extension ie., till 31/10/2023, the petitioner herein did not pay the said 75% of the bid amount. Thereafter, the respondent-Bank issued impugned E-auction notice, dtd. 27/10/2023, proposing to auction the properties on 16/11/2023. In the above background, assailing the said E-auction Notice, dtd. 27/10/2023, the present Writ Petition came to be filed.

(3.) Resisting the Writ Petition, a counter affidavit has been filed by the 1st respondent-Bank.