LAWS(MPH)-2011-10-21

GAURAV ENTERPRISES Vs. STATE BANK OF INDIA

Decided On October 20, 2011
GAURAV ENTERPRISES Appellant
V/S
STATE BANK OF INDIA Respondents

JUDGEMENT

(1.) Brief facts necessary for adjudication of this matter are as under :-

(2.) This petition is filed by the auction-purchaser submitting that the action of the bank runs contrary to the mandate of Securitisation and Reconstruction of financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act') and also against the settlement arrived at between the parties. To elaborate, Shri Dudawat, learned Counsel for the present petitioner submits that as per the settlement the petitioner was required to pay the amount positively by 5th August, 2011. Interestingly, the settlement provides the consequence of not depositing of said amount by 5th August, 2011 in Clause 4, whereby it is mentioned that the proposal will come to an end and respondent-State Bank of India shall finalise the auction proceedings held on 26-7-2011 and shall proceed further against the petitioner for remaining dues. He vehemently argued that the amount was in fact realised on 10th August, 2011.

(3.) Learned Counsel for the petitioner further submits that the action of the bank is contrary to the provision of Section 13 of the SARFAESI Act. Learned Counsel by placing reliance on the documents filed by the bank submits that the cheque which was deposited on 6-8-2011 was realised on 10-8-2011 and the documents further show that on 6-8-2011 the requisite amount was not in the account of M/s Agri Commex Warehousing & Logistics Pvt. Ltd.