Decided on September 11,2006



K.Gnanaprakasam, - (1.) THE Miscellaneous Appeal is directed as against the order dated 17.5.2006 passed by the DRT-II at Chennai.
(2.) The learned Advocate for the appellant submitted that the 1st respondent Bank brought the subject item of the property along with other property for sale under the SRFAESI Act in the auction fixed on 15.3.2006, and the appellant expressed his willingness to participate in the auction and also given a letter to the Authorised Officer of the respondent Bank on 14.3.2006, along with a Demand Draft dated 14.3.2006, for a sum of Rs. 6,50,000/- being 10% of the E.M.D. in respect of Item-1 of the property alone. Item-1 of the property was sold in the auction held on 15.3.2006, and the appellant herein was the highest bidder of the property for a sum of Rs. 74,87,000/- and had paid Rs. 12,21,750/- by way of Demand Draft on 15.3.2006 towards the balance of the E.M.D. and the entire sale consideration was paid on 12.4.2006, and the same was also duly acknowledged by the 1st respondent Bank by their letter dated 12.4.2006. As such, the appellant had deposited the entire sale consideration as required and he has become the successful bidder in the auction held on 15.3.2006. While so, it appears that the borrowers have filed application in IA Nos. 13 and 139/2006 in OA-89/2003 before the DRT stating that they have brought a 3rd party purchaser, who is willing to pay Rs. 92.5 lakh for Items 1 and 2 of the properties. DRT by its order dated 17.5.2006 has observed, "The Counsel for applicant Bank has sought for instructions from the applicant Bank and they are willing to accept Rs. 92.50 lakh as the sale consideration for the properties which has already been sold through public auction. The defendants have informed that they have kept 25 per cent of the sale consideration (Rs. 23.50 lakh) as FD in Indusind Bank in the name of one Mr. Nagarajan and Mr. Chidambaram the proposed purchasers (brought by the defendants). The defendants are hereby directed to break up the deposit and pay the 25% amount to the respondent Bank within a week's time from today. Balance 75% of Rs. 92.5 lakh is directed to be paid within 45 days from today directly to the respondent Bank. On receipt of the entire sale consideration, the applicant Bank is directed to release the title deeds to the third party purchaser brought by the defendants."
(3.) THIS order was passed at the back of the auction purchaser, who is the appellant herein and he was neither put on notice nor was heard before passing such an order. The appellant was not given an opportunity to be heard in this matter. The respondents have also admitted that the appellant was not put on notice before passing of the order by the DRT.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.