TaxTMI 
TaxTMI 
2016 (11) TMI 608
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.... nutshell, are as under : Respondent nos. 2 and 3 are the principal shareholders, directors and persons in charge of Respondent No.1 Company. Respondent No. 4 (ING Vysya Bank) had granted financial assistance to Respondent nos.1 to 3 by way of "Cash Credit facility". In consideration of the aforesaid loan, Respondent nos.1 to 3 had furnished security in terms of (a) Hypothecation of Book Debts, (b) Equitable mortgage of residential flat bearing no. 1-C at 7/1, Queens Park, Kolkata-700019 and (c) pledge of LIC Policy for an assured sum of Rs. 8 lakh in name of Respondent No.3. 4. Respondent nos. 1 to 3 defaulted in the repayment of the loan and thus, the account was classified as "Non-performing Asset" with effect from 1.12.2008 in acc....
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....n i.e. Residential Flat No. bearing 1C (1st Floor) situated at premises no. 7/1, Queens Park, Kolkata-700019 (hereinafter referred to as "the flat") which was in the names of Respondent nos. 2 and 3. 7. Being aggrieved by said notice dated 10th August, 2009, Respondent nos. 1 and 3 preferred application no.92/2009 under Section 17 of Act, 2002 on 15th September, 2009 against Respondent no.4 bank by stating that the act of taking symbolic possession of the flat in question was illegal, without jurisdiction and was in violation of the Act and Regulations made thereunder, primarily for the reason that no advertisement was published in the newspaper in terms of Rule 8 (2) of the Rules and no possession notice under Rule 8 (1) was affixed on ....
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....referring to an earlier auction notice dated 10th November, 2009, which had been published in newspapers "The Statesman" (English) and "Aajkal" (Bengali). The auction was to take place on 6th January, 2010 and the reserve price of the flat was Rs. 1,48,00,000/-(Rupees one crore forty eight lakh only). 12. In terms of the aforestated notice dated 4th January, 2010, the Appellant (M/s Oasis Dealcom Pvt. Ltd) submitted its bid to purchase the flat, who was the sole bidder. Respondent no.4 bank, vide its letter dated 6th January, 2010 accepted the bid for a sum of Rs. 1,48,00,000/- and on the same day, confirmed the sale in terms of the provisions of the Act. Respondent no.4 bank vide letter dated 9th January, 2010 also issued a sale certifi....
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....the matter was pending before the Tribunal. Ultimately, the Tribunal passed an order dated 10th June, 2010 in O.A. No.4 of 2010 setting aside the sale certificate. However, it permitted the borrowers to make payment within three weeks and if the amount was paid within three weeks, the bank was directed to refund the purchase money to the Appellant with 8% interest thereon. 17. Being aggrieved by the said order, the Appellant filed Writ Petition No.7087 of 2010 challenging the validity of the order dated 10th June, 2010 passed by the Tribunal and the said petition was disposed of with a liberty to the Appellant to approach the Debt Recovery Appellate Tribunal. 18. By an order dated 18th February, 2011, the Debt Recovery Appellate Tribu....
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.... to him, wide publicity had also been given to the auction. In view of the fact that the entire amount had been paid, according to him, the sale ought not to have been set aside. He further submitted that sufficient opportunity had been given to the borrowers to make the payment at an earlier point of time, but they had failed to make payment of their dues to the creditor bank. Moreover, according to him, the borrowers had also failed to furnish bank guarantee, as directed earlier and the said fact had been duly considered by the Tribunal at an earlier point of time and as the borrowers had failed to furnish the bank guarantee, the creditor bank had rightly confirmed the sale in favour of the Appellant company. 21. On the other hand, the....
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....very Appellate Tribunal as well as the High Court about the irregularities committed in holding the auction. 24. A submission had been made on behalf of the Appellant that the second application filed under Section 17 of the Act was not maintainable and therefore, it ought not to have been entertained by the Tribunal. We are not in agreement with the said submission for the reason that when another application was filed under Section 17(1) of the Act, the cause of action was different. At an earlier point of time, the issuance of notice as well as notice for sale of the flat had been challenged, whereas the subsequent application had been filed after the auction had been held. The cause of action in respect of both the applications was n....