ATUL MODI Vs. STATE BANK OF INDIA
LAWS(P&H)-2014-9-109
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 11,2014

Atul Modi Appellant
VERSUS
STATE BANK OF INDIA Respondents

JUDGEMENT

- (1.) The challenge in the present writ petition is to a communication dated 03.09.2014 (Annexure P-12) calling upon the petitioner, an auction purchaser, to pay all statutory dues and any other dues on the property, expenses relating to stamp duty, Registration Charges, Conveyance, Lawyer's Fees etc. as per the conditions of the auction notice. The grievance of the petitioner is that the demand of amount of enhanced compensation was not disclosed in the auction notice, therefore, the same cannot be claimed from the petitioner.
(2.) The petitioner relies upon a communication dated 22.04.2011 (Annexure P-6) addressed by Haryana State Industrial & Infrastructure Development Corporation Limited (for short 'HSIIDC') to the borrower in support of the contention that on failure to disclose the amount of enhanced compensation, the Bank is not competent to claim the same from the petitioner. The relevant clauses from the communication dated 22.04.2011 reads as under:- "3. That in the event of any financial institution taking over the assets of the Allottee on account of any default in repayment of loans/financial assistance of any sort and selling the same, such financial institution shall pay to the HSIDC its dues as a first charge. 4. That in the event of sale of the plot to a third party in the above process, it shall be the responsibility of such third party to discharge all such financial obligations towards the price of the plot as may arise subsequently to the sale of the plot and this condition will be made known to the party offering to buy the assets of the allottee. The financial institution shall also inform the buyer that he will be subject to the Estate Management regulations of HSIDC for issue of Letter of Re-allotment in favour of the buyer. 5. That the financial institution after taking over the assets including the plot, if shall be so, shall confirm from the HSIDC regarding its outstanding against that plot/allottee before putting it to the sale. Further financial institution/bank shall also inform the HSIDC about the sale transaction and request HSIDC for issue of letter of Re-allotment in favour of the buyer."
(3.) In the auction notice (Annexure P-1), the property was put to auction on "As is where is basis" and "As is what is basis". The relevant terms and conditions from the auction notice reads as under:- "1. The property is being sold on "AS IS WHERE IS BASIS" and "AS IS WHAT IS BASIS" 2. Particulars specified I respect of the said property I above schedule have been stated to be the best of the information of the Authorized Officer/Bank but Authorized Officer/Bank will not be answerable for any error, mis-statement or omission this public notice. 3. to 17. xx xx xx xx 18. All statutory dues payable and any other dues on the property(s), expenses relating to stamp duty, Registration Charges, Conveyance, Lawyers' Fees etc. will be borne by the auction purchaser.";


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