Allowed

M/S Avishkar Innovative Private Limited v. Canara Bank

Karnataka HC22 Aug 2024WP/22938/2024

Case brief

AI extract

What is this about?

Writ petition challenging an auction sale notice under the SARFAESI framework. The corrigendum correcting notices was issued less than 30 days before the scheduled auction, violating Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. The court quashed the impugned auction notice dated 5.8.2024 and permitted the bank to issue a fresh sale notice in accordance with law.

What did the court decide?

Impugned auction notice dated 05.08.2024 quashed; liberty reserved to respondent-Bank to issue fresh sale notice in accordance with the 2002 Rules.

M/S Avishkar Innovative Private Limited Vs Canara Bank — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:34652 WP No. 22938 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22^ND DAY OF AUGUST, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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WRIT PETITION NO. 22938 OF 2024 (GM-RES)

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BETWEEN:

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M/S AVISHKAR INNOVATIVE PRIVATE LIMITED NO. 970/32-1, 1ST FLOOR, 50 FEET ROAD RAGHAVENDRA BLOCK, SRINAGAR BANGALORE -560 050.

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…PETITIONER

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(BY SRI. MAHABALESHWAR CHITRIGEMATH, ADVOCATE)

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AND:

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CANARA BANK

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A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970, SPECIAL MID CORPORATE BRACH BASAVANAGUDI, NO. 69, 9TH MAIN ROAD JAYANAGAR, 3RD BLOCK, BANGALORE -560011 REPRESENTED BY ITS BRANCH MANAGER.

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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THE AUTHORISED OFFICER CANARA BANK, OFFICE AT ASSET RECOVERY MANAGEMENT BRANCH-I, 2ND BLOCK, CO BLDG NO.86, SPENCER TOPETITIONERR, MG ROAD BENGALURU-560 001.

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SMT. K.S. BASAVARAJESHWARI W/O. T.R. KUMARASWAMY AGED ABOUT 47 YEARS NO.65/238, 4TH CROSS THOMAS SCHOOL ROAD MARUTHINAGAR, VAJRAHALLI NELAMANGALA, BANGALORE-562 123.

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…RESPONDENTS (BY SMT. P CHITHRA NIRMALA, ADVOCATE FOR C/R1)

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NC: 2024:KHC:34652 WP No. 22938 of 2024

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AUCTION SALE NOTICE DTD. 05.08.2024 AT ANNX-E AND ETC.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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Respondents No.1 and 2 issued a corrigendum deleting the petitioner’s property bearing Sy.No.30/1, measuring 0.32 guntas, situated at Enchanapura Village, Thyamagondalu Hobli, Nelamangala Taluk, Bangalore Rural District, from the impugned auction sale notice dated 3.7.2024, the demand notice dated 30.8.2022, and the possession notice dated 10.11.2022. The respondents are directed to take necessary steps in this regard within two weeks from the date of receipt of the certified copy of this order.

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Following the order passed by this Court, the respondent-Bank issued a corrigendum to all notices, including the sale notice dated 3.7.2024, by rectifying the name of the village to Kodigehalli. The auction of the secured assets is scheduled for 28.8.2024.

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Admittedly, the corrigendum was issued on 1.8.2024, and the auction of the secured assets was scheduled for 28.8.2024. This does not satisfy the requirement under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, which mandates a

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NC: 2024:KHC:34652 WP No. 22938 of 2024

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clear 30-day notice period. On this ground alone, the order requires quashing. Accordingly, I pass the following

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ORDER

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i) The writ petition is allowed.

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ii) The impugned auction notice dated 5.8.2024 issued by the respondents 1 and 2 are hereby quashed.

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iii) Liberty is reserved with the respondent-Bank to issue a fresh sale notice strictly in accordance with law under Rules 2002.

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iv) It is needless to state that the petitioner is under an obligation to repay the loan amount to respondents No.1 and 2 Bank.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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M/S Avishkar Innovative Private Limited v. Canara Bank

Case brief

What is this about?

What did the court decide?

M/S Avishkar Innovative Private Limited v. Canara Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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