Sh Sunil Dutt v. Union Bank of India (Andhra Bank)
Case brief
What is this about?
The Tribunal granted interim relief restraining Union Bank of India from conducting an e-auction of a shop and house. The court held that the auction violated SARFAESI rules as the auction notice tried to recover a specific amount only justifiable from the house, not the shop, and the demand notice lacked statutory details.
What did the court decide?
Interim relief granted restraining the bank from conducting the auction on 25.01.2023.
What the court decided
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DEBTS RECOVERYTRIBUNAL-I,CHANDIGARH
sA/258/2022 SH SUNIL DUTTVS UNIONBANK OF INDIA(ANDHRABANK)
24.Ot.2023
ltem No.78
Present:
Sh. Rohit Sapra,Counselfor the Applicant. Sh. ShailenderKashayp, Counsel for the Respondent Bank.
This order willdisposeof the request for interim relief qua stay of e-auctionfixed up for 25.01.2023 and has been made by Sunil Dutt and anotherin the SA, filed by them under Section17 of the SecuritizationAct, against AuthorizedOfficer, Union Bank of India and another.
- The case of the applicantis that vide sanctionletter 30.10.20t7, applicantNo.l was sanctioneda loan of Rs.1B0Lacs and on the Security ofa shop.Again,vide sanctionletter dated 13.03.2018, he was sanctioneda Home loan of Rs.166 Lacs on the security of house.Again vide letter dated 13.03.2018,he was sanctioned apersonal loan ofRs.98 Lacs. This was unsecured loan.However, Bank's case is that it was secured by the mortgaged of home. On 07'12.2022,he filed thisSA challenging the wholeproceedings. On 20.12.2022 this Tribunal allowed the bank tocontinue with the auction but restrained it from confirming the sale till 06.01.2023.On 06.01'2023,bank informed that no bid has beenreceived.The bank also inFormed that the fresh sale notice has beenissued on 03.01.2023 for 25.01.2023. On 13.01.2023 applicant filed IANo.62 of2023 for impugning the salepublication dated 03.01.2023 for saleof house and shop.
Issues for consideration
3 issues framed by the court
Whether the auction of secured assets violates Rules B(5) and 8(6)(b) when the demand notice amount does not justify the inclusion of the shop property.
Whether the demand notice dated 23.12.2021 violated Section 13(3)(1) by failing to contain detailed account breakups and references to other loan accounts.
Whether the applicant is entitled to interim relief restraining the auction pending the merits of the secured assets discharge.
Parties & counsel
- applicant
Sunil Dutt
- respondent
Union Bank of India (andhra bank)
Coram
Presid
Case details
As recorded by the court registry
All orders in this case
2 orders share this CNR
- Order 1 — this page · P.o
- Order 2 · P.o
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