DARABATTULA NAGARAJU Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Mr. Gadipudi Venkateswarlu for LEO Law Associates LLP, appearing for the petitioner in W.P.No.22598 of 2024 and Mr. S. Satyanarayana Moorthy, learned counsel for the petitioner in W.P.No.22496 of 2024 and Mr. Josyula Bhaskara Rao, the learned counsel appearing for the 7th respondent in W.P.No.22598 of 2024 and for the 1st respondent in W.P.No.22496 of 2024.

(2.) The petitioner in W.P.No.22496 of 2024 is a scheduled bank and the petitioner in W.P.No.22598 of 2024 is an auction purchaser of a property that was sold by the petitioner-bank, under the SARFAESI Act proceedings. The parties herein would be referred to as the petitioner and the bank.

(3.) The bank, had earlier advanced certain financial facilities to certain third parties to the Writ Petition. As their accounts had become non- performing assets, proceedings under the SARFAESI Act were initiated and culminated in an auction sale conducted on 12/7/2024, for four immovable properties as described in the e-auction sale notice, dtd. 12/7/2024. The petitioner was the successful bidder as he had bid an amount of Rs.3,47,00,000.00 for the said property. As per the terms of the e-auction, the petitioner had transferred a sum of Rs.87,30,000.00 towards part consideration after which the authorized officer of the bank issued a sale confirmation advise, dtd. 12/7/2024, confirming receipt of the amount with further instructions to pay the remaining balance sale consideration by 29/7/2024. The petitioner sought extension of time for payment of balance sale consideration, by way of representation, dtd. 25/7/2024. The authorized officer of the bank had then granted a further period of 90 days from 12/7/2024 to the petitioner, by way of a communication, dtd. 29/7/2024.