YADAV PRASAD TOSNIWAL Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) The present appeal has been preferred challenging the order dtd. 17/6/2019 passed in a writ petition being WP No.19608 (W) of 2016. In connection with the appeal, the appellant/writ petitioner has also filed an application for appropriate order being CAN 1 of 2022.

(2.) The appellant's case is that the respondent no.5 published a notice in the newspapers on 29/9/2012 for e-auction of different immovable properties. The appellant participated in the auction held on 1/11/2012 conducted by the Central Bank of India (hereinafter referred to as CB) in respect of a flat being Flat no. 401 on the fourth floor of Krishnachura Apartment located at AG-129/1, Tal Bagan, Krishnapur, Kolkata-700101 (hereinafter referred to as the said flat), as detailed in serial no. 11(a) of the auction notice. The appellant submitted a bid of Rs.22,00,000.00 and emerged to be the highest bidder. Upon acceptance of the bid amount, the sale certificate was issued on 27/12/2012. The sale deed pertaining to the said flat was thereafter executed on 28/8/2014 and the original title deed being no. 10524 of 2008 was also handed over to the appellant. Suddenly, on 7/9/2015 a possession notice was affixed in the said flat. Stating such fact the appellant lodged a complaint on 29/9/2015 before the Banking Ombudsman but in vain. Again on 29/4/2016, persons claiming to be the recovery agents of SBI visited the flat and threatened to dispossess the appellant. On 4/5/2016, the appellant lodged a complaint before the DGM, Stressed Assets Management Branch, SBI and in reply, the appellant was communicated a memo dtd. 19/5/2016 by the Authorised Officer (in short, AO) of SBI intimating inter alia that the flat in question was owned by one Gaurav Surana (Jain) vide original deed no. 10524 of 2008 and the same had been mortgaged to SBI as security for sanctioning credit facilities to M/s Bhagwati Lifestyle Private Limited. The said account became NPA on 27/2/2012 and accordingly a notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, SARFAESI Act) was issued on 22/12/2012 and possession was taken under Sec. 13(4) of the SARFAESI Act on 20/9/2013. Thereafter, the appellant through his learned advocate issued a demand notice dtd. 7/6/2016 protesting against the acts of the CB and claiming refund of the consideration amount along with interest. As there was no response, the appellant was constrained to prefer the writ petition. During pendency of the writ petition, the Investigating Officer, Central Bureau of Investigation (in short, CBI) by a notice dtd. 19/9/2017 intimated that CBI has started a case being CBI Case No.RCBSK2016E0004 dtd. 18/3/2016 relating to bank fraud on SBI. In connection with the said case, the mother deed pertaining to the flat in question was also seized from the appellant. Such facts were brought on record by filling a supplementary affidavit.

(3.) The writ petition was dismissed for default on 5/3/2019. The restoration application filed thereafter was allowed by the order impugned and the writ petition was disposed of observing inter alia that 'apparently, there are title disputes in respect of an immovable property. State Bank of India is also claiming security interest in respect of the same immovable property which was sold by Central Bank of India. A decision may be required as to which of the Banks has a better or a simpler right title and interest in respect of the immovable property concerned. It is for the parties to have the disputes resolved before the appropriate forum, in accordance with law. A writ Court need not enter into title disputes'. After filing of the appeal, the Assistant Director, Prevention of Money Laundering Act, 2002 (in short, PMLA) vide notice dtd. 26/11/2021 had taken over possession of the said flat and the said notice stands annexed to the application for appropriate order. The notice also specifies that the order of provisional attachment was passed on 31/3/2020.