G. R. ASSOCIATES Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) The petitioners have challenged a request for bid for sale of Non Performing Assets (NPAs) to Asset Reconstruction Companies (ARCs)/NBFCs/FIs/Bank dated January 19, 2024 and consequential action.

(2.) The facts, in brief, are that the Union Bank of India through its authorized officer transferred its NPA accounts to respondent no. 6, an Asset Reconstruction Company(ARC) within the purview of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. The petitioners contend that they had given an offer to the Bank by way of a private treaty to purchase the secured assets at a price higher than the respondent no. 6 and, as such, in order to ensure the highest benefit of the Bank, which deals with public money, the petitioners" offer ought to have been accepted.

(3.) On several occasions, it is argued, the petitioner sought to revise its bid higher but those were thwarted by the Bank every time without giving any rhyme or reason. The petitioner hits at the alleged lack of transparency in such refusals. Learned senior counsel appearing for the petitioners argues that the purpose of auction sale is to fetch the highest value by the property concerned. Since the petitionersoffered the highest value, although by private treaty, the same had to be accepted over the lesser bid of the respondent no. 6.