STATE BANK OF HYDERABAD Vs. M. SOMASUNDARAM

JUDGEMENT

(1.) AGGRIEVED by the order dated 15.12.2003, passed by the DRT -I, Chennai, the State Bank of Hyderabad, Chennai -6, has preferred this appeal.

(2.) THE property of the defendant in the OA was mortgaged to the appellant Bank and the same was brought to sale by public auction held on 20.9.2001 by the Recovery Officer of the DRT, and the respondent herein namely, Mr. M. Somasundaram, purchased the property in the public auction for a sale consideration of Rs. 8,10,000/ -. After purchase, the respondent came to know that there were dues in respect of property tax, water and sewerage tax, electricity dues, to the extent of Rs. 59,227/ - and a sum of Rs. 12,600/ - payable to the Flat Owners Association, and in all Rs. 71,827/ -. The said amount was demanded by the auction purchaser either from the Recovery Officer or from the Tribunal. His representations were sent to the appellant Bank and they by their letter turned down the request by stating that while fixing the upset price, the arrears of tax, repairs etc. were taken into consideration and the upset price was also reduced from Rs. 9,70,000/ - to Rs. 8,00,000/ - and, therefore, the auction purchaser is not entitled to claim the said amount. The Recovery Officer submitted his report and on that report, the DRT took up a suo motu inquiry and the appellant Bank reiterated the very same contention before the DRT that the upset price was reduced by taking into consideration the tax due and repairs to be done etc. But the Tribunal allowed the claim of the auction purchaser and the said order is under challenge in this appeal.

(3.) THE rights and liabilities of buyer and seller are governed by the provisions of the Transfer of Property Act, 1882. Section 55 of the Transfer of Property Act deals with the rights and liability of the buyer and seller which is as under -