SHAKTI APIFOODS PRIVATE LTD Vs. STATE OF PUNJAB

JUDGEMENT

(1.) M/S Tirupati Chemicals Limited availed of credit facilities from respondent No. 5-I.F.C.I. Limited and in order to secure the loan mortgaged freehold land measuring 21 Bighas 14 Biswas 8 Biswansi (approximately 21,760 Sq. Yards) situated at Ludhiana-Malerkotla Road, Village Bhogiwal, Tehsil Malerkotla, District Sangrur together with building, plant and machinery. It appears that the borrowing entity failed to maintain financial discipline and the unit became sick. The loan was declared as NPA and in order to recover its dues, respondent No. 5 initiated action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act') and took over the secured assets.

(2.) In order to realize its dues, respondent No. 5 took out an advertisement on 15.01.2009 for sale of the said secured assets.

(3.) The advertisement clearly stated that the land in question was freehold land with the reserved price of Rs. 2.85 Crore. The petitioner participated in the auction held on 27.03.2009 and paid Rs. 2.90 Crore as a highest bidder. The petitioner paid the full amount and the sale certificate was issued in its favour on 27.03.2009 with an amendment carried out on 11.08.2009. The endeavor to assail the said sale by a third party also proved to be fruitless when the writ petition was dismissed on 10.07.2009.