BHAGWAN SINGH Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) Petitioners herein are purchasers of property in reference for consideration of Rs.3,71,50,000.00 in an E-auction conducted by respondent No.5-Bank in proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short SARFAESI Act) for default in payment of Loan Cash Credit etc. by previous owner of property M/s Dev Bhumi Ispat.

(2.) Respondent No.5-Bank has issued Sale Certificate in favour of petitioners, but respondents No. 1 and 2, for the charge recorded in revenue record in favour of respondent No.3 H.P. State Electricity Board for outstanding electricity bill and respondent No.4- State Excise and Taxation Department for outstanding taxes declared as arrears of land revenue, are not permitting the petitioners and respondent No.5 to execute the sale deed after removing the charges recorded in favour of respondents No.3 and 4 and treating the property in question free from all encumbrances. Therefore, petitioners have approached this Court with following main reliefs:-

(3.) Undisputed facts, in present case, are that one M/s Dev Bhumi Ispact had availed financial assistance i.e. Cash Credit and Term Loan from respondent No.5 by keeping the property in question as a secured assets with respondent No.5-Bank by creating a lien/charge over the property and a corresponding entry in the revenue record was made by Report No. 401 dtd. 14/5/2010. For non- payment/re-payment of cash credit and term loans by M/s Dev Bhumi Ispat, respondent No.5-Bank had invoked provisions of SARFAESI Act and Security Interest (Enforcement) Rules, 2002 and in furtherance thereto, had advertised public notice for E-auction of suit property in newspaper dtd. 12/7/2019 proposing E-auction on 30/7/2019. In E-auction, petitioners were confirmed as highest bidders and to this effect, respondent No.5-Bank had issued Certificate of Confirmation of Sale of property under SARFAESI Act, 2002 vide communication/certificate dtd. 2/8/2019 (Annexure P-3). Thereafter, on depositing sale amount of Rs.3,71,50,000.00 including TDS amount, Sale Certificate dtd. 4/11/2019 (Annexure P-1) was issued by Authorized Officer. In sequel thereto, possession of suit property was handed over to petitioners and a certificate of handing and taking over the possession was issued on 5/11/2019.