CELIR LLP versus MR. SUMATI PRASAD BAFNA & ORS.

CELIR LLP versus MR. SUMATI PRASAD BAFNA & ORS.

This Court held that (a) the 9th auction and the sale confirmed in favour of the petitioner were lawful and the sale certificate dated 27.09.2023 conferred absolute title; (b) the Assignment Agreement dated 28.08.2023 executed during pendency of petitioner’s Special Leave Petition/Civil Appeal was hit by lis pendens and is void; (c) respondents’ acts in attempting to frustrate implementation amounted to contumacious conduct though, in view of subsequent withdrawals/undertakings, the Court declined to convict them of contempt at this stage and instead issued restitutive and compulsory directions (cancellation of Release Deed, withdrawal of S.A. No.46 of 2022, handing over possession and...

Parties
Petitioner: Celir LLP; Respondent: Mr. Sumati Prasad Bafna; Respondent: Jayesh A. Vavia; Respondent: Union Bank of India; Respondent: Greenscape IT Park LLP
Jurisdiction
India
Judgment Date
13 December 2024
Procedural Posture
Contempt Petition / Final Order / Judgment
Outcome
Contempt petitions disposed with directions; respondents given final opportunity and not held guilty of contempt at present
Legal Topics
Wilful Disobedience, Lis Pendens, Constructive Res Judicata (henderson Principle), Sale by Auction Under SARFAESI, Sale Certificate, Doctrine of Election, Transfer Pendente Lite, Restitutive Measures
Contempt of Court Civil Procedure Property Law Banking and Finance Equity Wilful Disobedience Lis Pendens Constructive Res Judicata (henderson Principle) +5 more

Case Brief

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Parties

Celir LLP

Petitioner

Mr. Sumati Prasad Bafna

Respondent

Jayesh A. Vavia

Respondent

Union Bank of India

Respondent

Greenscape IT Park LLP

Respondent

Procedural Posture

Contempt Petition / Final Order / Judgment

Legal Issues

  1. 1 Whether respondent actions after this Court’s judgment of 21.09.2023 amounted to contempt for wilful disobedience
  2. 2 Whether proceedings before DRT (S.A. No.46 of 2022) and subsequent transfers could continue after this Court’s judgment and issuance of sale certificate
  3. 3 Whether Assignment Agreement dated 28.08.2023 in favour of Subsequent Transferee is hit by lis pendens and effect of non-registration under amended s.52 TPA

Ratio Decidendi

This Court held that (a) the 9th auction and the sale confirmed in favour of the petitioner were lawful and the sale certificate dated 27.09.2023 conferred absolute title; (b) the Assignment Agreement dated 28.08.2023 executed during pendency of petitioner’s Special Leave Petition/Civil Appeal was hit by lis pendens and is void; (c) respondents’ acts in attempting to frustrate implementation amounted to contumacious conduct though, in view of subsequent withdrawals/undertakings, the Court declined to convict them of contempt at this stage and instead issued restitutive and compulsory directions (cancellation of Release Deed, withdrawal of S.A. No.46 of 2022, handing over possession and...

Court Disposition

Contempt petitions disposed with directions; respondents given final opportunity and not held guilty of contempt at present

Orders

  • The 9th auction and sale to petitioner upheld; sale certificate dated 27.09.2023 declared absolute
  • Borrower and Bank to cancel Release Deed dated 28.08.2023 within one week