ARCE POLYMERS PRIVATE LIMITED versus M/S. ALPHINE PHARMACEUTICALS PRIVATE LIMITED AND OTHERS

ARCE POLYMERS PRIVATE LIMITED versus M/S. ALPHINE PHARMACEUTICALS PRIVATE LIMITED AND OTHERS

Given the borrower's repeated requests for restructuring, assurances, and conduct that induced the Bank to defer SARFAESI action for over a year, the borrower waived and is estopped from challenging the Bank's compliance with Section 13(3A); additionally, the valuation and auction process was proper and sale at a price above valuation/reserve validated the sale; the High Court order quashing the sale was set aside and the DRT order upholding the sale was affirmed.

Parties
Appellant: Arce Polymers Private Limited; Respondent: M/s. Alphine Pharmaceuticals Private Limited
Jurisdiction
India
Judgment Date
03 December 2021
Procedural Posture
Civil Appeal / Decision on Appeal (final Judgment)
Outcome
appeal allowed
Legal Topics
Waiver, Equitable Estoppel, Moulding of Relief, SARFAESI Act S.13(2)/s.13(3 A)/s.13(4), Valuation and Auction
Banking Recovery of Debts Administrative Law Property Law Waiver Equitable Estoppel Moulding of Relief SARFAESI Act S.13(2)/s.13(3 A)/s.13(4) +1 more

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Parties

Arce Polymers Private Limited

Appellant

M/s. Alphine Pharmaceuticals Private Limited

Respondent

Procedural Posture

Civil Appeal / Decision on Appeal (final Judgment)

Legal Issues

  1. 1 Whether the secured creditor complied with Section 13(3A) of the SARFAESI Act in responding to representations by the borrower
  2. 2 Whether the borrower waived or is estopped from challenging SARFAESI proceedings by its conduct and representations
  3. 3 Whether earlier steps in SARFAESI proceedings up to auction can be challenged despite limitation

Ratio Decidendi

Given the borrower's repeated requests for restructuring, assurances, and conduct that induced the Bank to defer SARFAESI action for over a year, the borrower waived and is estopped from challenging the Bank's compliance with Section 13(3A); additionally, the valuation and auction process was proper and sale at a price above valuation/reserve validated the sale; the High Court order quashing the sale was set aside and the DRT order upholding the sale was affirmed.

Court Disposition

appeal allowed

Orders

  • Impugned High Court order dated 24 January 2020 in Writ Petition No.13936 of 2019 set aside
  • Writ petition treated as dismissed