M.S. SANJAY versus INDIAN BANK & ORS.

M.S. SANJAY versus INDIAN BANK & ORS.

The High Court erred in setting aside the auction and sale certificate solely on a technical computation of notice days without considering equitable factors, the long finality of the sale since 2007, the purchaser's payment and substantial development of the property; because Article 226 is discretionary, the writ court should have refused to upset the sale to do substantial justice, and therefore the High Court's order was set aside and the appeal allowed.

Parties
Appellant / Auction Purchaser: M.S. Sanjay; Respondent No.1 / Bank: Indian Bank; Respondent No.2 / Borrower: M/s. Arihant Sarees; Respondent / Guarantor: Respondent No.4 (Guarantor)
Jurisdiction
India
Judgment Date
29 January 2025
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court Order Dated 15 06 2019
Outcome
Appeal allowed; impugned High Court judgment and order dated 15-06-2019 set aside
Legal Topics
Article 226, Extraordinary Jurisdiction, SARFAESI Act (sale/auction), Auction Notice Period, Equity, Frivolous Litigation, Interference by Writ Court
Constitutional Law Banking and Finance Law Civil Procedure Article 226 Extraordinary Jurisdiction SARFAESI Act (sale/auction) Auction Notice Period Equity +2 more

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Parties

M.S. Sanjay

Appellant / Auction Purchaser

Indian Bank

Respondent No.1 / Bank

M/s. Arihant Sarees

Respondent No.2 / Borrower

Respondent No.4 (Guarantor)

Respondent / Guarantor

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court Order Dated 15 06 2019

Legal Issues

  1. 1 Whether the High Court erred in setting aside the auction/sale on the ground of insufficient notice without noticing equitable considerations
  2. 2 Whether interference under Article 226 is appropriate for a mere statutory infraction that has not caused injustice
  3. 3 Validity of the auction/sale conducted on 31.07.2007 given the notice period requirements then in force

Ratio Decidendi

The High Court erred in setting aside the auction and sale certificate solely on a technical computation of notice days without considering equitable factors, the long finality of the sale since 2007, the purchaser's payment and substantial development of the property; because Article 226 is discretionary, the writ court should have refused to upset the sale to do substantial justice, and therefore the High Court's order was set aside and the appeal allowed.

Court Disposition

Appeal allowed; impugned High Court judgment and order dated 15-06-2019 set aside

Orders

  • Impugned judgment and order of the High Court dated 15.06.2019 set aside
  • Appeal allowed