By virtue of an interim order dated 28/08/2014, this Court had directed the respondent bank to file an affidavit as to whether any notice has been issued to the borrower under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002.
2. Learned Standing Counsel appearing for the respondent bank submits that only public notice has been issued and no personal notice has been issued to the defaulter. In the meantime, sale has been effected and the 3rd respondent has purchased the property for an amount of Rs.5,39,999/-. Sale certificate has been issued by the bank and necessary stamp papers have been purchased by the auction purchaser for preparing registered document. That apart, an amount of Rs.1,58,432/- being the balance amount after adjusting the amount due to the bank had been remitted in the account of the petitioner.
3. The learned counsel for the petitioner submits that since sale was without personal notice, the same is invalid. But he would however submit that he is willing to pay the entire amount due to the bank.
4. Having heard the learned counsel appearing for the petitioner, the respondent bank and the auction purchaser, I am of the view that sale is liable to be declared as void on account of the fact that personal notice has not been issued to the petitioner under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. Hence this writ petition is disposed of with the following directions:
i) Sale in respect of the secured assets which was held on 20/01/2014 is declared as void.
ii) The petitioner shall refund an amount of Rs.1,58,432/- (Rupees one lakh fifty eight thousand four hundred and thirty two only) being the amount credited by the bank to the Savings Bank account of the petitioner along with the entire amount due to the bank within a period of two weeks.
iii) On receipt of the aforesaid amount from the petitioner, respondent bank shall effect refund of the amount paid by the auction purchaser.
iv) The auction purchaser shall seek refund of the amount paid towards purchase of stamp papers.
(sd/-) (A.M.SHAFFIQUE, JUDGE) jsr