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Issues: (i) Whether the auction sale of the secured immovable properties was vitiated for non-compliance with Rule 9(3) and Rule 9(4) of the Security Interest (Enforcement) Rules, 2002. (ii) Whether the challenge to the sale certificate relating to the movable properties could be entertained when it would amount to re-agitating an issue already concluded by the earlier Division Bench judgment.
Issue (i): Whether the auction sale of the secured immovable properties was vitiated for non-compliance with Rule 9(3) and Rule 9(4) of the Security Interest (Enforcement) Rules, 2002.
Analysis: The auction purchaser was required to pay 25% of the sale price immediately after the auction and the balance within fifteen days of confirmation of sale, unless extended by a written agreement between the parties. The payment of the balance amount to make up 25% was made only after the auction date, and the remaining 75% was paid much later. The explanation offered for the delay was found unsatisfactory, and the correspondence relied upon did not amount to a valid written extension within the meaning of the Rules. The Court treated these requirements as mandatory and held that the delay constituted contravention of the statutory procedure.
Conclusion: The auction of the immovable properties was liable to be set aside, and the challenge succeeded.
Issue (ii): Whether the challenge to the sale certificate relating to the movable properties could be entertained when it would amount to re-agitating an issue already concluded by the earlier Division Bench judgment.
Analysis: The movable properties had already been the subject of earlier writ proceedings and a writ appeal, both of which had ended against the petitioner. The present challenge was viewed as an attempt to reopen the same auction through a different form of relief. Entertaining the petition would have required re-examination of the earlier final judgment, which was impermissible.
Conclusion: The challenge to the movable-property sale certificate was not entertained, and the petition failed on this issue.
Final Conclusion: The Court upheld the challenge to the immovable-property auction for breach of the mandatory auction conditions, but declined relief in relation to the movable-property sale certificate because it was barred by the earlier final decision.
Ratio Decidendi: Compliance with the payment requirements under Rule 9 of the Security Interest (Enforcement) Rules, 2002 is mandatory, and an auction sale conducted in breach of those requirements can be set aside for fundamental procedural error; a later challenge cannot reopen a matter already finally decided.
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