Private sale of mortgaged property upheld after failed auction, with delivery limited to 550 marlas after demarcation.
A challenge to a bank's sale of mortgaged property failed where the initial auction did not fructify and the eventual transfer was completed by private sale after the borrowers were given an opportunity to clear the dues, which they did not use. Objections based on reserve price, tender timeline, sale certificate, and alleged non-compliance with the Security Interest (Enforcement) Rules, 2002 were rejected because they proceeded on the assumption that the property had already been transferred under the earlier auction notification. The court also accepted that only 550 marlas out of the larger undivided extent was to be delivered after proper demarcation, with the borrowers' participation in that process.
Issues: Whether the Court should interfere with the sale of the mortgaged property by the Bank, including the objections based on the reserve price, alleged violation of the auction procedure, and the extent of land to be delivered to the purchasers.
Analysis: The auction process initially initiated by the Bank did not fructify, and the sale in favour of the purchasers was ultimately effected by private sale. Before resorting to that course, the appellants had been informed and given an opportunity to clear the outstanding dues, which they did not avail. The challenge founded on the reserve price, the tender timeline, the issuance of the sale certificate, and alleged non-compliance with the Security Interest (Enforcement) Rules, 2002 proceeded on the incorrect assumption that the property had been transferred under the earlier auction notification. The Court also accepted the Bank's stand that only 550 marlas out of the larger undivided extent was to be delivered after proper demarcation, with participation of the appellants in that process.
Conclusion: Interference was declined, the sale was upheld, and the Bank was directed to hand over only 550 marlas after proper demarcation.
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