Review Petition filed under Section 17(7) of SARFAESI Act challenging an order that cancelled an auction due to default in payment of bid balance. The Tribunal found no error apparent on the face of the record.
The Review Petition numbered 7 of 2023 is dismissed with no costs to any party.
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.
IN THE DEBTS RECOVERY TRIBUNAL. I AT HYDERABAD
DATED THIS THE 8III DAY OF DECEMER, 2C-23
PRESENT: GUMMADI GOPICHAND, PRESIDING OFFICER
REVIEw PMITIoN No.7 /2023 Ir.t
SA.No.44/2023
M/s. Tudor Management Consultants Pvt. Ltd., Flat No.1 106, Mount Nazir Apartments, Beside Ravindra Bharathi, Saifabad, Hyderabad, Telangana - 500 004. Rep. by its Manager Director: Mr. Devarabhotla Veera Venkata Satya Garudu Murthy, S/o. D. Venkateswara Rao.
Petitioner/ Applicant.
I/ersus
IFCI Limited, 5-9- 1 3, Tararnandal Complex, Saifabad, I{yderabad, Telangana-500004. Rep. by its Authorized Officer.
Respondent/ Respondent.
Courusel for the Petitioner
Counsel for the Respondent
Mr. M. Abhinay Reddg. Ms. P.V. Antna Kumari.
-:ORDER:.
'1'hc the auction conducted by the Rcs in respect of land admeasuring Ac.2 ,situated .2261 A, 2t4 I A, 224 lE.D, 225lEE,
Review Petltloner No.7/2023
2241U, 2251U, 2241 A, 22518, 22tlE, 22tlVU, 2tOlE, 2tIlE, Inmulnarva village, GP., Kothur Mandal, Mahabubnagar District and became the successful bidder for an amount of Rs.10.54 crores. The Petitioner paid 25o/o of the bid amount by 19.01.2022 and thereafter when the Petitioner wanted to occupy the subject propert5r, he found resistance from several trespassers who threatened the workers of the Petitioner. The Respondent-Fl basing on the request made by the Petitioner, extended time for payment of balance 75o/o of bid amount with interest. On 01.06.2022, 17.O7.2022 and O2.O8.2O22, the Petitioner requested the Respondent-Fl for extension of time in view of the difficulty faced by him in identifying the property. The Respondent-Fl extended time but, without taking any steps for resolving the issues raised by the Petitioner, all of a sudden, issued e-mail dt.12.0L2O23 and letter dt.13.01.2023, stating that the auction sale of the subject property is cancelled. Challenging the same, the Petitioner filed SA.No.44 12023 on the file of this Tribunal and same was disposed of by this Tribunal on 14.11.2023, holding that, the auction of the schedule property conducted on r2.o1.2023 stands cancelled in view of the lapses on the part of the Respondent-Fl and it has to refund the EMD amount to the Petitioner herein.
Rev i ew P eti ti o n e r N o. 7/202 3
Point No,(i):-
Rev i ew P etiti on e r N o. 7/202 3
Petitioner herein intimating about the disposal of the aforesaid writ petition and advised the Petitioner to pay the balance 75o/o of the bid amount within 7 days. So, the auction of the property conducted by the Respondent deemed to be confirmed on 13.04.2022.
'(3) On euery sale of immouable propertg, the purchaser shall immediately, i.e., on the same day or not rater than next tuorking dag, as the case mant be, paa a deposit of tuenty fiue per cent of the amount oittn "it"-pri"., im"n i" inclusiue of earnest moneA deposited, if aftU, to the authoriz,ed officer conducting the sare and" in d.efautt of such deposit, the property shall be sold again.
(4) The balance amount of purchase pice payable shatt be paid bg the purchaser to the authorized fficer on or before the fifteenth daa of confirmation of iate of the immouable propertg or such extend.ed. period as mag be agreed upon in writing bettaeen the purchaser and. the seanred creditor, in any case not exceed.ing three months.
(5) In default of payment utithin the period. mentioned in sub-rule (4), the deposit shau be forfeited. to the secured. creditor and the property shall be resold" and the d.efautting purchaser shall forfeit all claims to the property oi to ony part of the sum for which it may be subsequentt{ sord.."
- was confirmed in the So, when auction sal€I name of the Petitionei Petitioner is expected i; to pa)' thc balance,7:. 5-z o0 tft.06h,&Hor*i or before 15 days of ;' ---t ,-; 'r_ 1_
Rev i ew P eti ti on e r N o.7 /2023
confirmation of sale. Admittedly, the Petitioner did not deposit the entire bid amount within the stipulated period and sought time by addressing letters to the Respondent and the Respondent has also extended the time beyond 3 months, which is against Rule 9(4) of the Rules, 2oo2. In fact, the Respondent vide its letter dt.26.0s.2o22, extended the time for payment of balance amount with interest @ lo.75o/o p.a. But, demanding interest on the bid price amount and extending time even beyond 3 months is against the provisions contemplated under the SARFAESI Act and the Rules, 2oo2, in conducting auction by the secured creditor.
Rev i ew P etiti on e r N o.7 /2023
dt.14.11.2023 passed in the sA can be reviewed onlywhen there is any error apparent on the face of record but, I see no error apparent on the face of the record warranting intervention of this Tribunal to review the impugned order. So, there are no merits in the Review Petition and same is liable to be dismissed. Accordingly, this point in answered against the Petitioner.
Point No.(ti):-
(Dictated to the muarc Secre_tarA, transcibed bg him, corrected, signed. and. pronounced bg me in the open court on this the 8th dag of December, 2023).
sdl - (c. coPrcHANDl PRESIDING OFFICER
fi fl 0EC 2013
OR?.', HYDEftAEAI}
2 issues framed by the court
Whether the applicant has made out any ground for reviewing the order passed by this Tribunal in the underlying writ petition?
What relief can be granted in the Review Petition filed under Section 17(7) of the SARFAESI Act?
3 provisions across 3 enactments
M/s. Tudor Management Consultants Pvt. Ltd.
IFCI Limited
GUMMADI GOPICHAND
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
