Ram Pal v. State of Haryana & Ors.

Present : Ms. Anu Pal, Advocate, Ms. Anu Pal, Advocate, for the petitioner. for the petitioner. Mr. K.P.S.Dhillon, Advocate, Mr. for respondents No.2,6,7,8,9,10. for respondents No.2,6,7,8,9,10. *** ANUPINDER SINGH GREWAL, J. (Oral) ANUPINDER SINGH GREWAL, J. (Oral The petitioner is seeking directions to respondent No.1 for The petitioner is seeking directions to respondent No.1 for The petitioner is seeking directions to respondent No.1 for taking appropriate action against respondent No.2 for fraudulent practice. taking appropriate action against respondent No.2 for fraudulent practice. taking appropriate action against respondent No.2 for fraudulent practice. Further issuance of writ in the nature of mandamus directing respondent Further issuance of writ in the nature of mandamus directing respondent Further issuance of writ in the nature of mandamus directing respondent handing over the possession and title deeds of the sole residential No.2 for handing over the possession and title deeds of the sole residential handing over the possession and title deeds of the sole residential house of the petitioner as well as direction to respondent No.2 to refrain house of the petitioner as well as direction to respondent No.2 to refrain house of the petitioner as well as direction to respondent No.2 to refrain from getting the sale deed registered and other directions have been sought. from getting the sale deed registered and other directions have been sought. from getting the sale deed registered and other directions have been sought.

2. Learned counsel for the petitioner submits that respondent Learned counsel for the petition Learned counsel for the petition Bank has behaved in a fraudulent manner and deceived the petitioner Bank has behaved in a fraudulent manner No.2-Bank has behaved in a fraudulent manner into depositing Rs. 15 lakh on 05.12.2024 in pursuance to the notice issued to depositing Rs.15 lakh on 05.12.2024 in pursuance to the notice issued under Section 13(4) of the SARFAESI Act under Section 13(4) of the SARFAESI Act (for short ‘the Act’) on

03.12.2024. She . She submits that the respondent No.2 the respondent No.2-bank had issued the notice under Section 13(4) of the Act on 03 notice under Section 13(4) on 03.12.2024 (Annexure P-14) without disclosing that the secured asset had already been sold by way of without disclosing that the secured asset had already been sold by way of without disclosing that the secured asset had already been sold by way of auction. Thus, t Thus, the officials of the bank misled the petitione e bank misled the petitioner into depositing VANDANA 2025.01.14 10:36 I attest to the accuracy and integrity of this document CWP-34645-2024 2024 (O&M) She further submits that prior to the sum of Rs.15 lakh on 05.12.2024. She further submits that prior to the sum of Rs.15 lakh on 05.12.2024.

03.12.2024, the petitioner had not received any notice either under Section 03.12.2024, the petitioner had not received any notice 03.12.2024, the petitioner had not received any notice 13(2) or under Section or under Section 13(4) of the Act.

4. Issue notice to the respondents. Issue notice to the respondents. Learned counsel for the respondent Learned counsel for the respondent-Bank puts in appearance and accepts notice and submits that the petitioner had taken a loan for a sum and accepts notice and submits that the petitioner had taken a loan for a sum and accepts notice and submits that the petitioner had taken a loan for a sum of Rs.12 lakh in the year 2004 but he had failed to repay the installments. of Rs.12 lakh in the year 2004 but he had failed to repay the installments. of Rs.12 lakh in the year 2004 but he had failed to repay the installments. Notice under Section 13(2) of the Act was issued on Notice under Section 13(2) was issued on 14.06.2022 for a sum of Rs.9,70,197/ 70,197/- and notice under Section 13(4) and notice under Section 13(4) of the Act was issued on had been put to auction vide notice 27.09.2022. Property/secured asset had been put to auction vide notice 27.09.2022. Property dated 05.09.2024 (Annexure P-13) and the dated 05.09.2024 (Annexure P 13) and the sale was scheduled for

25.09.2024 at a lakh. The sale was confirmed on the at a reserve price of Rs.70 lakh. The sale was confirmed on the same date and the sale certificate has been issued on 07.12.2024. He further same date and the sale certificate has been issued on 07.12.2024. same date and the sale certificate has been issued on 07.12.2024. submits that petitioner had deposited the amount of Rs. 15 lakh in his submits that petitioner had deposited the amount submits that petitioner had deposited the amount saving account and it does not amount to repaying the saving account and does not amount to repaying the loan especially when the secured asset had already been sold. the secured asset had already been sold.

6. Heard. Heard. It is apparent that after issuance of notice under Section 13(2) It is apparent that after issuance of notice under Section 13(2) It is apparent that after issuance of notice under Section 13(2) of the Act on 14.06.2 on 14.06.2022 and notice under Section 13 022 and notice under Section 13(4) of the Act on

27.09.2022, the respondent Bank scheduled the 27.09.2022, the respondent Bank scheduled the e-auction for 25.09.2024 at a reserve price lakh. The sale was confirmed on the same date and reserve price of Rs.70 lakh. The sale was confirmed on the same date and the sale certificate has been issued on 07.12.2024. the sale certificate has been issued on 07.12.2024. the sale certificate has been issued on 07.12.2024.

7. There appears to be an error on the part of the officials of the There appears to be an error on the part of the officials of the There appears to be an error on the part of the officials of the respondent-Bank in issuing anot Bank in issuing another notice under Section 13(4) her notice under Section 13(4) of the Act on 03.12.2024

2.2024 (Annexure P-14) for an amount Rs.9,70,197 for an amount Rs.9,70,197/- as mentioned in the notice, as they had previously issued notice under S previously issued notice under Section 13(4) of VANDANA 2025.01.14 10:36 I attest to the accuracy and integrity of this document CWP-34645-2024 2024 (O&M) in the year 2022 wherein the same amount had been mentioned. in the year 2022 wherein the same amount had been the Act in the year 2022 wherein the same amount had been Merely because erely because the petitioner had deposited the petitioner had deposited some money in his saving account on 05.12.2024, it would not give t on 05.12.2024, it would not give him him any right to thwart the been carried out by the respondent Bank in September, auction which had been carried out by the respondent Bank in September, auction which ha

2024. We, therefore, do round to interfere in the matter We, therefore, do not find any good ground to interfere in the matter at this stage while exercising writ jurisdiction. It is necessary to refer to the at this stage while exercising writ jurisdiction. It is necessary to refer to the at this stage while exercising writ jurisdiction. It is necessary to refer to the Section 13(8) of the SARFAESI Act, which is reproduced hereunder: Section 13(8) of the SARFAESI Act, which is reproduced hereunder: Section 13(8) of the SARFAESI Act, which is reproduced hereunder: “Section 13(8) in The Securitization And Reconstruction Of Section 13(8) in The Securitization And Reconstruction Of Section 13(8) in The Securitization And Reconstruction Of And Enforcement Of Security Interest Act, Financial Assets And Enforcement Of Security Interest Act, Financial Assets 2002 2002 Where the amount of dues of the secured creditor together (8) Where the amount of dues of the secured creditor together (8) with all costs, charges and expenses incurred by him is with all costs, charges and expenses incurred by him is with all costs, charges and expenses incurred by him is tendered to the secured creditor at any time before the date of tendered to the secured creditor at any time before the date of tendered to the secured creditor at any time before the date of publication of notice for public auction or inviting quotations publication of notice for public auction or inviting quotations publication of notice for public auction or inviting quotations or tender fro m public or private treaty for transfer by way of or tender from public or private treaty for transfer by way of lease, assignment or sale of the secured assets, lease, assignment or sale of the secured assets,-(i) the secured lease, assignment or sale of the secured assets, assets shall not be transferred by way of lease assignment or assets shall not be transferred by way of lease assignment or assets shall not be transferred by way of lease assignment or sale by the secured credit (ii)in case, any step has been sale by the secured creditor; and taken by the secured creditor for transfer by way of lease or taken by the secured creditor for transfer by way of lease or taken by the secured creditor for transfer by way of lease or assignment or sale of the assets before tendering of such assignment or sale of the assets before tendering of such assignment or sale of the assets before tendering of such amount under this subsection, no further st amount under this subsection, no further step shall be taken by amount under this subsection, no further st such secured creditor for transfer by way of lease or such secured creditor for transfer by way of lease or such secured creditor for transfer by way of lease or assignment or sale of such secured assets.” assignment or sale of such secured assets. assignment or sale of such secured assets.

8. It is evident from a bare reading of the Section 13(8) It is evident from a bare reading of the Section 13(8) of the that the right of the borrower for redemption is only before SARFAESI Act that the right of the borrower for redemption is only before SARFAESI Act the issuance of auction notice and not thereafter. The auction notice had the issuance of auction notice and not thereafter. The au the issuance of auction notice and not thereafter. The au and therefore, at this stage, it would not be been issued on 05.09.2024 and therefore, at this stage, it would not be been issued on 05.09.2024 appropriate for this Court while exercising writ jurisdiction to interfere in appropriate for this Court while exercising writ appropriate for this Court while exercising writ the matter. A reference may be judgment of the Supreme Court in A reference may be made to judgment of the Supreme Court in the case of “CELIR LLP Vs. Bafna Motors (Mumbai) Private Limited CELIR LLP Vs. Bafna Motors (Mumbai) Private Limited CELIR LLP Vs. Bafna Motors (Mumbai) Private Limited and others” The relevant extract of the same is (2024) 2 SCC 1. The relevant extract of the same is reproduced hereunder:- reproduced hereunder: VANDANA 2025.01.14 10:36 I attest to the accuracy and integrity of this document CWP-34645-2024 2024 (O&M) XXX “XXX XXX XXX iii) In accordance with the unamended Section 13(8) In accordance with the unamended Section 13(8) iii) of the SARFAESI Act, the right of the borrower to redeem the of the SARFAESI Act, the right of the borrower to redeem the of the SARFAESI Act, the right of the borrower to redeem the secured asset was available till the sale or transfer of such secured asset was available till the sale or transfer of such secured asset was available till the sale or transfer of such secured asset. In other words, the borrower’s right of secured asset. In other words, the borrower’s right of secured asset. In other words, the borrower’s right of did not stand terminated on the date of the auction redemption did not stand terminated on the date of the auction redemption sale of the secured asset itself and remained alive till the sale of the secured asset itself and remained alive till the sale of the secured asset itself and remained alive till the transfer was completed in favour of the auction purchaser, by transfer was completed in favour of the auction purchaser, by transfer was completed in favour of the auction purchaser, by registration of the sale certificate and delivery of possession of registration of the sale certificate and delivery of possession of registration of the sale certificate and delivery of possession of sset. However, the amended provisions of Section the secured asset. However, the amended provisions of Section the secured a 13(8) of the SARFAESI Act, make it clear that the right of the 13(8) of the SARFAESI Act, make it clear that the right of the 13(8) of the SARFAESI Act, make it clear that the right of the borrower to redeem the secured asset stands extinguished borrower to redeem the secured asset stands extinguished borrower to redeem the secured asset stands extinguished thereunder on the very date of publication of the notice for thereunder on the very date of publication of the notice for thereunder on the very date of publication of the notice for public auction under Rule 9(1) of the Rules of 2002. In effect, public auction under Rule 9(1) of the Rules of 2002. In effect, the right of redemption available to the borrower under the the right of redemption available to the borrower under the the right of redemption available to the borrower under the present statutory regime is drastically curtailed and would be present statutory regime is drastically curtailed and would be present statutory regime is drastically curtailed and would be available only till the date of publication of the notice under available only till the date of publication of the notice under available only till the date of publication of the notice under and not till the completion of the Rule 9(1) of the Rules of 2002 and not till the completion of the Rule 9(1) of the Rules of 2002 sale or transfer of the secured asset in favour of the auction sale or transfer of the secured asset in favour of the auction sale or transfer of the secured asset in favour of the auction purchaser. purchaser.”

9. Learned counsel for the petitioner submits that notice under Learned counsel for the petitioner sub Learned counsel for the petitioner sub Section 13(2) of the Act

14.06.2022 was handed over to the petitioner 13(2) of the Act dated 14.06.2022 was handed over to the petitioner along with notice dated 03.12.2024 g with notice dated 03.12.2024 (Annexure P (Annexure P-14) and therefore, he did not have any knowledge of the notice issued under Section 13 (4) of the Act not have any knowledge of the notice issued under Section 13 (4) of not have any knowledge of the notice issued under Section 13 (4) of which was issued on 27.09.2022. which was issued on 27.09.2022.

10. to accept the contention of the petitioner that the It is difficult to accept the contention of the petitioner that the It is notice under Section 13(4) dated 27.09.2022 was not sent to him under Section 13(4) of the Act dated 27.09.2022 was not sent to him and was handed over to him along with notice dated 03.12.2024 (Annexure and was handed over to him along with notice dated 03.12.2024 and was handed over to him along with notice dated 03.12.2024 P-14). In any In any event, it raises disputed question of fac it raises disputed question of fact which is difficult to adjudicate in writ proceedings. adjudicate in writ proceedings.

11. noted facts and circumstances, we do not find any In the afore-noted facts and circumstances, we do not find any In the afore good ground to exercise our writ jurisdiction in view of the law laid down good ground to exercise our writ jurisdiction in view of the law laid down good ground to exercise our writ jurisdiction in view of the law laid down United Bank of India Vs. Satyawati Tandon and by the Supreme Court in “United Bank of India Vs. Satyawati Tandon and by the Supreme Court in “