Allowed

Chandra Vati v. Indian Bank

DRT28 Jul 2025SA/329/2025

Case brief

AI extract

What is this about?

In a Special Appeal, the Debts Recovery Tribunal set aside an auction conducted by the Bank on April 25, 2025, due to failure to prove notice pasting and alleged under-valuation. The Bank was directed to cancel the Sale Certificate and refund the excess sale consideration.

What did the court decide?

Auction dated 25.04.2025 set aside; Sale Certificate cancelled; Auction Purchaser to be refunded; Applicant's deposit adjusted against loan.

Chandra Vati versus Indian Bank — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH

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ITEM NO.34

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SA/329/2025 CHANDRA VATI Vs INDIAN BANK

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28.07.2025

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Present: Sh. Rahul Garg Advocate along with Sh. Satbir Mor Advocate for the Applicant (SA)

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Sh. Saurav Goyal Advocate for the Respondent Bank

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Sh. Arpit Chawla Advocate for the Auction Purchaser along with Auction Purchaser in person

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Counsel for the Bank states that he has filed the reply to the SA and has also supplied a copy of the same to the opposite party.

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Heard on the SA. Applicant has challenged the auction which was conducted by the Bank on 25.04.2025. Counsel for the Bank has not produced any proof of the fact that the auction notice was pasted on the property. He also states that the Auction Purchaser has also written to the Bank to refund his money as he is no more interested in buying the property. Applicant has already deposited a sum of Rs.40 lacs and also written a letter to the Bank that the said amount may be adjusted in the loan account and further that the excess sale consideration may be withdrawn from his account.

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The auction has also been challenged on the ground of under-valuation. The amount due from the Applicant was around Rs.40 lacs. Bank sold the secured asset for a sum of Rs.1,05,22,000/-. Applicant states that the value of his property is around Rs.3 crore and odd sum. Applicant has produced on the record the valuation report.

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Considering the totality of circumstances, auction dated 25.04.2025 is hereby set-aside. Bank is directed to cancel the Sale Certificate and refund the sale consideration deposited by the Auction Purchaser to him.

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Counsel for the Auction Purchaser has made a statement at the bar that he does not claim any interest on the same. Bank would adjust the sum of Rs.40 lacs

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SA/329/2025 CHANDRA VATI Vs INDIAN BANK 2

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deposited by the Applicant towards the loan account. Counsel for the Applicant has also made a statement at the bar that in case, any amount is still due to the Bank from the Applicant, he will make the payment of the same within 15 days of the intimation.

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On the full payment being made by the Applicant, Bank would return the title-deeds to the Applicant. In view of the above observations, the SA stands disposed of. File be consigned to the record room after due compliance.

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Pronounced in the open Tribunal (A.S. Narang) ANJ Presiding Officer DRT-2, Chandigarh (Additional Charge)

Chandra Vati v. Indian Bank

Case brief

What is this about?

What did the court decide?

Chandra Vati v. Indian Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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