SAROJ SHIVHARE Vs. GAURAV ENTERPRISES

JUDGEMENT

(1.) This order shall govern disposal of Writ Appeal No. 581/2011, State Bank of India and another Vs. M/s. Gaurav Enterprises and others and Writ Appeal No. 589/2011, Smt. Saroj Shivhare and others Vs. M/s Gaurav Enterprises and others.

(2.) Both these appeals have been filed against the order dated 20-10-2011 passed by learned Single Judge of this Court in Writ Petition No. 5432/2011.

(3.) M/s Radhika Food Products had taken a loan from the State Bank of India. It could not repay the loan, hence, the bank proceeded against respondent Nos. 3 to 5, who are appellants in Writ Appeal No. 589/2011, under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the "SARFAESI Act". The Bank issued a notice for auction of the property, which was mortgaged with the Bank by respondent No. 2, Smt. Saroj Shivhare, respondent No. 3, Suresh Shivhare. An advertisement was published to this effect in the local news papers. The auction was held on 26-7-2011. Respondent No. 1, M/s. Gaurav Enterprises, participated in the auction and his bid was highest of Rs. 1,00,21,777/-. He deposited Rs. 25,05,500/-, 25% of the bid amount, immediately with the State Bank of India. In the meanwhile the borrowers, i.e., respondent Nos. 3 to 5 filed a petition before this Court, which was registered as 4898/2011 and disposed of on the basis of settlement arrived at between the State Bank of India and borrowers, respondent Nos. 3 to 5. The Writ Court passed the following order:--