sub rule 6 of Rule 8 of the Rules, 2002 says that “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, the description of the movable property to be sold including the details of the encumbrances known to the secured creditor” meaning thereby, the Bank was required to disclose the encumbrances while issuing the sale notice for auctioning the property in question, but the Bank did not do so. It is admitted that the property in question was having the encumbrances as discussed above. As such the auction purchaser has not erred in not depositing the remaining 75% of the auction money after knowing that the Bank has sold 5 Kattha land, whereas only 3.5 Kattha land was mortgaged by the borrower with the Bank. Moreover, prior to issuance of sale notice, the borrower had already filed the S.A. before the Tribunal below challenging the actions of the Bank. As per the Act & rules made thereunder, the authorized officer of the Bank has to mention the encumbrances in the sale notice as per clause (a) of Rule 8(6) of the Rules, 2002, but the Bank has not complied with the same. As such the Tribunal below has rightly set aside the auction sale notice and directed the Bank to return the deposited auction amount to the auction purchaser.
