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Issues: (i) Whether the secured creditor complied with the notice requirements under Rule 8(6) and Rule 9(1) of the Security Interest (Enforcement) Rules, 2002 and Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (ii) Whether the writ petition was liable to be dismissed for suppression of material facts and lack of clean hands.
Issue (i): Whether the secured creditor complied with the notice requirements under Rule 8(6) and Rule 9(1) of the Security Interest (Enforcement) Rules, 2002 and Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Analysis: The Bank asserted that sale notices were issued to the petitioners at their correct addresses and that earlier notices were served while later notices were returned with postal endorsements such as unclaimed, intimation served, and door locked. The Court applied the presumption of service to notices sent by registered post to the correct address, and held that the petitioners had not rebutted that presumption by filing a reply affidavit. On that basis, the Court found compliance with the statutory requirement of a thirty-day notice before sale and the further requirement of thirty days before publication and auction.
Conclusion: The notice requirements were held to have been complied with, and the challenge to the sale notice failed.
Issue (ii): Whether the writ petition was liable to be dismissed for suppression of material facts and lack of clean hands.
Analysis: The petitioners did not disclose the earlier securitisation proceedings and related challenges to the recovery measures, though those facts were material to the relief sought. The Court treated this omission as suppression of material facts and relied on the principle that writ jurisdiction is discretionary and requires full and candid disclosure. It held that a litigant who conceals material facts can be non-suited without examining the claim on merits.
Conclusion: The writ petition was held liable to be dismissed for suppression of material facts and abuse of the writ process.
Final Conclusion: The recovery measures were upheld, and the writ petition was rejected with costs.
Ratio Decidendi: In writ jurisdiction, service of a sale notice sent by registered post to the correct address is presumed unless rebutted, and material suppression by the petitioner justifies dismissal of the writ without granting relief on merits.
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