M/S R K Traders and Anr. v. M/S Asrec (India) Limited and Ors.
Case brief
What is this about?
Appeal against dismissal of securitization application due to auction favoring a lowest bidder. Bench held auction irregular due to arbitrary preference clause, set aside impugned order, and remanded for reconsideration.
What did the court decide?
Impugned order dated 12.02.2021 set aside; appeal allowed; matter remanded to DRT Dehradun for reconsideration in accordance with law.
What the court decided
IN DEBTS RECOVERY APPELLATE TRIBUNAL, ALLAHABAD Appeal Dy. No. 123/2021 (Arising out of S.A. No. 80/2020 of DRT, Dehradun)
M/s R. K. Traders & Anr.
…………....……………………...……………………………………………...Appellants
Versus
1. M/s ASREC (India) Limited and others
.…………………….…….………………………………………………..….Respondents
Advocates who appeared in this case
For the appellant Shri Ankur Gupta, Advocate For the respondents Ex-parte
JUDGMENT
Date of Decision: 14.03.2022
JUSTICE R. D. KHARE, CHAIRPERSON
- The present appeal has been filed under section 18 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SARFAESI Act”) against the judgment and order dated 22.02.2021 passed by the DRT, Dehradun, whereby the securitization application filed by the appellant was dismissed.
Issues for consideration
2 issues framed by the court
Whether the acceptance of the lowest bid in a public auction, contrary to the highest bid, validates by an arbitrary preference clause is violative of Article 14.
Whether the preference clause in the notice without statutory force renders the auction proceedings illegal and arbitrary.
Parties & counsel
- appellant
M/s R. K. Traders & Anr.
- respondent
M/s ASREC (India) Limited and others
Coram
R. D. Khare
Case details
As recorded by the court registry
All orders in this case
4 orders share this CNR
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