B a B International v. Bank of Baroda and Ors.
Case brief
What is this about?
In an interim order during an appeal against a SARFAESI Act possession order, the Court noted a discrepancy between claimed dues and deposited amounts. The Court fixed a date for the auction purchaser to file a reply and maintained the status quo regarding the property.
What did the court decide?
Till 17.08.2023, status quo regarding the property in question shall be maintained by all parties.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Appeal Dy. No. 559/2023 Date: 25.05.2023
BAB International Vs. Bank of Baroda & Ors.
Present : Shri Shadab Alam, counsel for the appellant, Shri Satyajeet Mukherjee, counsel for the respondent-Bank, Shri Abdul Majeed, counsel for the respondent-Auction Purchaser,
Heard the learned counsels for the parties.
Learned counsel for the appellant submits that as per notice under section 13(2) of the SARFAESI Act issued by the Bank, the amount due is shown to be Rs. 20,93,842/-. The learned counsel has drawn attention of this court to the affidavit, which was filed by the Bank before the CMM in the proceedings under section 14 of the SARFAESI Act. In para 6 of the said affidavit dated 29.06.2022, the amount due against the appellant is shown to be Rs. 20,93,842/-. Learned counsel further contends that the appellant has deposited Rs. 10.50 lacs before this Tribunal and Rs. 13.50 lacs with the respondent-Bank on different dates i.e. 27.03.2019, 12.07.2019, 31.12.2019 and 05.02.2021. As such, the total amount of Rs. 24.00 lacs has been deposited by the appellant against the demand of Rs. 20,93,842/-, which is more than 50% of the amount due as claimed by the Bank in the notice under section 13(2) of the SARFAESI Act.
It is thus argued that the authorized representative of the bank by giving false impression to the CMM has obtained the order under section 14 of the SARFAESI Act, which is bad in law. It is lastly stated that the appellant is willing and ready to redeem the property in question.
Learned counsel for the respondent-Bank submits that as on 05.04.2023, the amount due against the appellant is about Rs. 33.00 lacs and odd after adjusting the auction money.
Issues for consideration
2 issues framed by the court
Whether the order under section 14 of the SARFAESI Act is maintainable when the claimant claims more than the amount actually due.
Whether the appellant has deposited more than 50% of the claimed dues to redeem the property.
Parties & counsel
- appellant
BAB International
- respondent
Bank of Baroda
- respondent
Auction Purchaser
Coram
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · May
- CNR
- 091090005592023
- Topic
- Banking and Recovery
All orders in this case
6 orders share this CNR
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