Dismissed

M. Ravinder Reddy, v. The State Bank of Patiyala

Telangana HC27 Mar 2012WP/4311/2012

Case brief

AI extract

What is this about?

The single-judge court dismissed a writ petition challenging the bank's rejection of the petitioner's highest bid in a SARFAESI Act auction. The court held that an effective and efficacious remedy exists under Section 17 and granted liberty to approach the Debt Recovery Tribunal. The merits of the case were not discussed, and the petition was dismissed without opinion.

What did the court decide?

Liberty granted to petitioner to approach Debt Recovery Tribunal under Section 17 of SARFAESI Act.

M. Ravinder Reddy, Vs The State Bank of Patiyala — Banking and Recovery | Telangana HC (2012)

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THE HON’BLE SRI JUSTICE V.V.S.RAO AND

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THE HON’BLE SRI JUSTICE G.KRISHNA MOHAN REDDY WRIT PETITION NO.4311 OF 2012

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ORDER: (Per the Hon’ble Sri Justice V.V.S.Rao)

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In the auction conducted by the first respondent on 10.1.2012 under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter, the SARFAESI Act or the Act) to sell the secured asset, i.e., Flat No. 701, Seventh Floor, Bock C-7, Singapore Class Township, Pocharam, Ghatkeshar Mandal, the petitioner participated. He submitted his bid of Rs.20,40,000/- along with Earnest Money Deposit(E.M.D.) amount of Rs.1,85,000/-. It is his case that the first respondent opened the bids on that day. Though the petitioner’s bid was allegedly found highest, it was not accepted and it was returned. Aggrieved by the same, the petitioner filed the instant writ petition. He would contend that the action of the first respondent in returning the highest bid and again conducting auction is illegal and arbitrary.

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A counter affidavit is filed by the bank-the first respondent stating as follows. The bank received fourteen (14) bids when sealed tenders were invited. The petitioner also submitted the bid. All the bidders were informed that an auction will be conducted among them so as to fetch highest price to the bank. The petitioner did not participate and walked out. An auction was conducted. The highest bid offered stood at Rs.22,25,000/- and the same was accepted. The writ petition is also opposed on the ground that the petitioner has an effective and efficacious remedy of filing an application under Section 17 of the SARFAESI Act.

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There is no dispute that anybody including the borrower aggrieved

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by any of the measures taken by the secured creditor under Section 13(4) of the SARFAESI Act can avail the remedy of filing an application before Debts Recovery Tribunal(D.R.T.) under Section 17 of the Act. There is also no dispute that the D.R.T. can decide all the questions and reverse all the actions of the secured creditor if such actions are found to be illegal and contrary to the Act. Therefore, the petitioner is given liberty to avail the alternative remedy under Section 17 of the Act. In the result, the writ petition is dismissed without expressing any opinion on the merits of the case, subject to the above observations. The miscellaneous petition shall also stand dismissed. There shall be no order as to costs.

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_______________ (V.V.S.RAO, J) _________________________________ (G.KRISHNA MOHAN REDDY, J)

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27^th March 2012 pnb

M. Ravinder Reddy, v. The State Bank of Patiyala

Case brief

What is this about?

What did the court decide?

M. Ravinder Reddy, v. The State Bank of Patiyala

Case brief

What is this about?

What did the court decide?

What the court decided

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