POCHIRAJU INDUSTRIES LTD., TAMILNADU Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Proceedings initiated by the Punjab National Bank (hereinafter, 'the bank') against the petitioner company under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, 'the SARFAESI Act') culminated in the 'E-auction Sale Notice to General Public' dated 01.07.2017, whereby the bank proposed to auction the petitioner company's properties, viz., the land admeasuring Ac.3.86 cents at Kolthur Village, Shameerpet Mandal, Ranga Reddy District, with buildings and plant and machinery, for realization of its dues, on 24.07.2017. The present writ petition was filed challenging this notice.

(2.) By order dated 20.07.2017, this Court observed that as the petitioner had come at the eleventh hour, no reason was made out to grant stay of the sale proposed to be held on 24.07.2017, but in the light of the allegation that the bank had undervalued the property, this Court directed it to receive 25% of the bid amount in the event a sale materialized on 24.07.2017 but restrained it from confirming the sale or taking further proceedings, until further orders.

(3.) The auction sale was knocked down in favour of a sole bidder on 24.07.2017 and the said auction purchaser company came on record as the fourth respondent.