MRS. LEELAMMA MATHEW versus M/S INDIAN OVERSEAS BANK & ORS.

MRS. LEELAMMA MATHEW versus M/S INDIAN OVERSEAS BANK & ORS.

The suit was for damages/compensation for deficiency in area and could not have been decided by the DRT/Appellate Tribunal under the SARFAESI Act, hence Section 34 did not bar the civil suit; the Bank issued and registered a sale certificate and sale deed for 54 cents and accepted the entire sale consideration despite being aware (from Tehsildar report) that the actual deliverable area was 39.60 cents, and having duties under Rule 8 of the Rules and Section 54 TP Act to disclose and be fair, the High Court erred in setting aside the Trial Court decree and the Trial Court decree in favour of the plaintiff is to be restored.

Parties
Appellant/plaintiff: MRS. LEELAMMA MATHEW; Respondent/defendant: M/S INDIAN OVERSEAS BANK & ORS.
Jurisdiction
India
Judgment Date
17 November 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment in RFA No.379 of 2014
Outcome
Appeal allowed; impugned High Court judgment and order quashed and set aside; Trial Court judgment and decree restored.
Legal Topics
Auction Sale, Possession, Sale Certificate, Damages/compensation, Limitation, Fraud/non Disclosure, Authorized Officer Duties
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Security Interest (enforcement) Rules, 2002 Transfer of Property Act Auction Sale Possession Sale Certificate Damages/compensation Limitation +2 more

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Parties

MRS. LEELAMMA MATHEW

Appellant/plaintiff

M/S INDIAN OVERSEAS BANK & ORS.

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment in RFA No.379 of 2014

Legal Issues

  1. 1 Whether suit for damages/compensation in respect of deficiency in area is barred by Section 34 of the SARFAESI Act
  2. 2 Whether bank is liable for damages for deficiency in area where sale certificate and consideration were for larger area
  3. 3 Whether "as is where is" / "as is what is" defence precludes relief when seller/authorized officer knew of deficiency

Ratio Decidendi

The suit was for damages/compensation for deficiency in area and could not have been decided by the DRT/Appellate Tribunal under the SARFAESI Act, hence Section 34 did not bar the civil suit; the Bank issued and registered a sale certificate and sale deed for 54 cents and accepted the entire sale consideration despite being aware (from Tehsildar report) that the actual deliverable area was 39.60 cents, and having duties under Rule 8 of the Rules and Section 54 TP Act to disclose and be fair, the High Court erred in setting aside the Trial Court decree and the Trial Court decree in favour of the plaintiff is to be restored.

Court Disposition

Appeal allowed; impugned High Court judgment and order quashed and set aside; Trial Court judgment and decree restored.

Orders

  • Respondent Bank to pay the decretal amount to the appellant with interest as per the Trial Court judgment and decree within 8 weeks from date of judgment.
  • Respondent Bank to pay costs of Rs.25,000 to the original plaintiff within 8 weeks from date of judgment.