M/S. TRIPOWER ENTERPRISES (PRIVATE) LIMITED versus STATE BANK OF INDIA & ORS.

M/S. TRIPOWER ENTERPRISES (PRIVATE) LIMITED versus STATE BANK OF INDIA & ORS.

The appeal is partly allowed: the DRAT order is modified to direct return of the original documents Exhibits A110 to A114 to the Bank/auction purchaser, except documents relating to Paimash No.722/4 admeasuring 1.80 acres (subject to a final decree in O.S. No.186/1976), and the High Court order restoring DRT retention is reversed; the DRT remains free to decide the pending O.A. No.11/2008 on merits.

Parties
Appellant / Auction Purchaser: M/S. TRIPOWER ENTERPRISES (PRIVATE) LIMITED; Respondent No.1 / Bank: State Bank of India; Respondent No.2 / Guarantor: Associated Trading Corporation Pvt. Ltd.; Respondent No.3 / Borrower: M/s. Rukmini Mills Ltd.; Respondent No.11 / Party Claiming Title: A.R. Sridharan
Jurisdiction
India
Judgment Date
24 April 2020
Procedural Posture
Civil Appeal / Appeal Against High Court Order Reversing Drat; Leave Granted
Outcome
Appeal partly allowed
Legal Topics
Return of Original Documents, Validity of Equitable Mortgage, Auction Sale and Sale Certificate, Res Judicata, Possession Under Section 13(4) of the SARFAESI Act, Release of Title Documents
Debt Recovery Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Property Law Civil Procedure Return of Original Documents Validity of Equitable Mortgage Auction Sale and Sale Certificate Res Judicata +2 more

Case Brief

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Parties

M/S. TRIPOWER ENTERPRISES (PRIVATE) LIMITED

Appellant / Auction Purchaser

State Bank of India

Respondent No.1 / Bank

Associated Trading Corporation Pvt. Ltd.

Respondent No.2 / Guarantor

M/s. Rukmini Mills Ltd.

Respondent No.3 / Borrower

A.R. Sridharan

Respondent No.11 / Party Claiming Title

Procedural Posture

Civil Appeal / Appeal Against High Court Order Reversing Drat; Leave Granted

Legal Issues

  1. 1 Whether the Bank/auction purchaser was entitled to the return of original documents (Exhibits A110 to A114) after issuance of sale certificate
  2. 2 Whether the equitable mortgage relied upon by the Bank was valid and could be litigated to prevent return of documents
  3. 3 Whether documents pertaining to Paimash No. 722/4 (1.80 acres) could be released despite a final civil decree in favour of respondent No.11

Ratio Decidendi

The appeal is partly allowed: the DRAT order is modified to direct return of the original documents Exhibits A110 to A114 to the Bank/auction purchaser, except documents relating to Paimash No.722/4 admeasuring 1.80 acres (subject to a final decree in O.S. No.186/1976), and the High Court order restoring DRT retention is reversed; the DRT remains free to decide the pending O.A. No.11/2008 on merits.

Court Disposition

Appeal partly allowed

Orders

  • The operative order of the DRAT is modified: I.A. No.995/2017 in O.A. No.11/2008 is partly allowed and the Bank shall return Exhibits A110 to A114 to facilitate handing over to the auction purchaser, except documents relating to Paimash No.722/4 admeasuring 1.80 acres which shall not be released until final decision...
  • The High Court order dated 06.09.2019 is reversed to the extent it restored DRT retention of the documents