TaxTMI 
TaxTMI 
2022 (2) TMI 1468
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....e Security Interest (Enforcement) Rules, 20022, it had taken a decision to cancel the sale of the mortgaged property and to forfeit the earnest money deposited by the petitioner amounting to Rs. 41.80 lakhs. The communication further sets out the decision of the respondent to refund the amount of Rs. 62.75 lakhs which had been additionally deposited. The 10 June 2021 order which is assailed, is in substance, a sale notice which had come to be issued in respect of the mortgaged property for which the petitioner had submitted a bid. For the purposes of disposal of the present writ petition the following essential facts would merit being noted. 2. The proceedings for the sale of the mortgaged property commenced pursuant to a notice issued on ....
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....to deposit a sum of Rs. 30 lakhs only on 17 March 2021. The balance amount of Rs. 32,75,000/- which was payable on 17 March 2021 was ultimately deposited on 18 March 2021. It is this default of one day which forms and constitutes the basis for the impugned action of the respondent Bank. 4. When the writ petition was initially entertained, a learned Judge on 25 June 2021, taking note of the submissions advanced, had by a detailed order provided that the respondents would maintain status quo with respect to the property in question. 5. Upon exchange of pleadings and when this writ petition was taken up for final disposal, a preliminary objection was raised by Ms. Gupta, learned counsel appearing for the respondent Bank, who contends that th....
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....which was committed by the petitioner, the FI was well with in its rights to forfeit the earnest money which was deposited. 8. Mr. Jagga, learned counsel appearing on behalf of the petitioner on the other hand submits that the action as initiated by the respondent is wholly arbitrary and has been resorted to without bearing in mind the unprecedented situation which came to prevail on account of the Covid-19 outbreak. It was submitted that the situation which came to prevail consequent to the breakout of the pandemic, constricted the petitioner from ensuring effective compliance with the provisions enshrined in Rule 9(3). Mr. Jagga further submits that as would be evident from a perusal of Rule 9(4), the FI is conferred the discretion to en....
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....visaged in Rule 9 in light of the peculiar circumstances which prevailed. 10. In the considered view of this Court while it is true that the statute does mandate and envisage the deposit being made in accordance with the provisions made in sub rule (3), this Court cannot shut its eyes to the unprecedented situation which came to prevail on account of the pandemic outbreak in March 2021. The situation which arose and befell the entire nation, nay the global community as a whole, was one which perhaps has no parallel in modern history. Even when this Court takes up the petition today, it is not unmindful of the fact that the nation as a whole has commenced its journey on the path to recovery and that families, enterprises and businesses are ....
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....sance of the difficulties triggered by the pandemic while granting reliefs, as evident from the decision of the Supreme Court in In Re: Cognizance for Extension of Limitation S.M.W.P (C) No. 3/2020 on 23.03.2020. 13. Against this backdrop and in the facts of the present case, the petitioner has convinced this court that the delay occasioned was bonafide, unintentional and a result of the chaos brought on by the announcement of the national lockdown. While condoning the delay, I am cognisant of the fact that in principle and statute, the deadlines prescribed in banking and financial laws require strict interpretation. However, in view of the delay in question only being of 5 days, which cannot be deemed as inordinate, and the exceptional n....
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....ch forms the subject matter of the present writ petition is brought to a close and the petitioner called upon to furnish the balance amount constituting the bid which was submitted and the controversy consequently lent a hiatus. This would clearly balance the interest of the petitioner as well as the public financial institution. Regard must also be had to the fact that it is not the case of the FI that today, it would be in a position to fetch more than the bid submitted by the petitioner. In fact the tenor of the submissions addressed on its behalf was of closure being accorded without being bound by the peculiar and singular facts of this case being treated as a precedent. 14. While the Court is conscious of the mandate of the particula....