TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 815
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....dent No. 2 herein stood as a guarantor and mortgaged her property bearing No. 353, Sector 19, Faridabad, Haryana. One Ashok Kumar Dubey, also stood guarantor and mortgaged his property. On failure to repay the loan amount, the respondent No. 1-bank had declared the Account as Non- Performing Asset (NPA) on May 31, 2006 and thereby issued a demand notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 („SARFAESI Act?, in short) to the borrower, guarantors/mortgagers, claiming an amount of Rs. 1,72,14,846/-. Symbolic possession of property was taken on July 04, 2007 by the respondent No. 1-bank. On July 22, 2008, the respondent No. 1-bank issued notice for sale of property with reserve price of Rs. 75 lakhs and invited bids by August 29, 2008. The sale notice was published on July 26, 2008 in Delhi Edition of Newspapers namely „Economic Times? and the „Rashtriya Sahara?. Smt. Archana Mishra, respondent No. 2 filed S.A. No. 47/2008 before the Debt Recovery Tribunal-II, Delhi (DRT-II, Delhi in short) on August 19, 2008, challenging the notice and actions of the bank. Since there was no res....
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....0262/2009, which was disposed of by this Court with a direction to the Appellate Tribunal to dispose of appeal No. 164/2009. The Appellate Tribunal allowed the appeal filed by the petitioners herein vide order dated July 05, 2010 and Smt. Archana Mishra, the respondent No. 2 herein was directed to surrender possession of the property in question to the petitioners. Smt. Archana Mishra filed a writ petition being W.P.(C.) No. 4434/2010 before this Court against order dated July 05, 2010, on which, this Court stayed the direction for delivery of possession. Since the DRT had reserved its order in the Securitization Application for orders, this Court disposed of the writ petition on November 16, 2010 with directions which is reproduced as under: "Learned counsel for R-2 and R-3 states that the DRT has concluded hearing in the matter and reserved judgment for which a date has been fixed as 19.11.2010. It is agreed that the interim arrangement arrived at by this Court on 07.07.2010 will continue to operate till the pronouncement of the judgment by the DRT. The petition and the application stand disposed of. Dasti to learned counsel for the parties." The DRT, in its judgement dated N....
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.... the auction purchasers is dismissed. They are entitled to get back the amount of sale consideration deposited by them with interest. The respondent bank is, accordingly, directed to refund the sale consideration of Rs. 84.2 Lacs to the appellant/auction purchasers along with interest @ 9% p.a. from the date of its deposit until the date of payment. Parties shall bear their own cost of these appeals." 4. It is the submission of Mr. Sanjiv Kakra, learned counsel for the petitioners is that the findings arrived at by the Appellate Tribunal is based on presumptions and conjectures and contrary to the law. It is also his submission that the conclusion of the Appellate Tribunal that the newspaper „Rashtriya Sahara? has no East Delhi edition and its Delhi edition does not have sufficient circulation in Faridabad was on a mere statement of the counsel for the respondent No.2. He states that a newspaper published in Delhi is also circulated in Delhi-NCR and no newspaper has special publication/edition for Delhi-NCR. According to him, the conclusion of the Appellate Tribunal that the Delhi edition of „Rashtriya Sahara? did not apparently have sufficient circulation in Faridabad....
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....er a notice of thirty days for sale of the immovable secured assets, under sub-rule (5): PROVIDED that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in two leading newspapers; one in vernacular language having sufficient circulation in the locality by setting out the terms of sale, which shall include,-- (a) the description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor; (b) the secured debt for recovery of which the property is to be sold; (c) reserve price, below which the property may not be sold; (d) time and place of public auction or the time after which sale by any other mode shall be completed; (e) depositing earnest money as may be stipulated by the secured creditor; (f) any other thing which the authorised officer considers it material for a purchaser to know in order to judge the nature and value of the property". 7. A perusal of the aforesaid would reveal that for effecting a sale of immovable secured asset, the following are necessary: (i) Public notice to be published in tw....
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....sofar as the newspaper 'Rashtriya Sahara' is concerned, the Appellate Tribunal was of the following view: "The perusal of the original copies of both the Delhi and Haryana/Rajasthan editions of 'Rashtriya Sahara' newspaper dated 11.3.2013 to 18.3.2013 filed by the S.A. applicant/appellant shows that Delhi edition was mainly related to the local news of Delhi but on some days it had specific page for Ghaziabad and Noida. It had no page for any other area of NCR, including Faridabad, whereas the Haryana/Rajasthan edition besides having the local news of those Stated had, on some dates, specific pages for western U.P., Madhya Pradesh, Punjab and Himachal Pradesh. The Haryana/Rajasthan edition did not contain any local news of Delhi. The certificate issued by the Sales and Marketing Department of Rashtriya Sahara, New Delhi though says that Delhi edition of the newspaper has circulation in Faridabad but, in my view, the said certificate cannot be accepted as proof of sufficient circulation of Delhi edition in Faridabad, as no circulation detail has been mentioned in it to show whether or not the circulation is sufficient. The said certificate is general in nature and does not ....
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....da in U.P., and is in the other direction to Faridabad which abuts Badarpur, South Delhi. 11. Insofar as the submission of the learned counsel for the petitioners that the respondent No. 2 had sufficient knowledge about the sale of the property through sale notice and as such, cannot agitate the issue that the newspaper containing the sale notice had no circulation in Faridabad, is concerned, suffice to state that the said submission would be inconsequential inasmuch as Sub-Rule 6 contemplates maximum coverage to intending sale is given, so that the secured creditor gets the best price for the property and the loan amount to the maximum is recovered which is also in the interest of the borrower. After the auction was effected, the respondent No. 2 had offered a higher amount of Rs. 95 lakhs for redeeming the mortgage. She had specifically pleaded in her application that this request of her, was not accepted by the bank. It is not the case of the petitioners herein that they were also ready to offer higher price than Rs. 95 lakhs. Meaningfully read, the conclusion of the Appellate Tribunal was that the sale was not effected in accordance with Sub-Rule 6 of Rule 8 of the Enforcement....