P.Murugan vs A.O., Indian Bank & Anr

S. Ravi Kumar, Chairperson

This Appeal is against Order dated 14.03.2013 in SA 95/2009 of DRT-III, Chennai.

Brief facts leading to this Appeal are as follows:-

Appellant herein filed above referred SA contending that Sale Certificate dated 13.01.2009 is null and void for the reason that Bank did not give any Notice to Appellant under SARFAESI Act, 2002, and the property was never mortgaged with Bank and no security interest was created.

Bank resisted the Application contending that original owner mortgaged the property with Bank and Appellant herein has purchased one among 40 plots that are mortgaged to Bank. Bank also contended that Appellant is a 3rd party and there is no privity of contract between Bank and Appellant, therefore, there is no need to give any Notice under SARFAESI Act, 2002.

Tribunal below, on a consideration of contentions and rival contentions of both parties, dismissed Securitisation Application holding that Sale Certificate was issued after the property was duly sold in public auction and when Appellant has not challenged the Sale and earlier steps, he is not entitled to get relief as prayed in the Securitisation Application. Aggrieved by dismissal of Application, Appellant preferred present Appeal.

Heard arguments of all parties.

Main argument of Advocate for Appellant is that the very same Presiding Officer in respect of some other parties pleased to allow Securitisation Application, but dismissed the Application of Appellant herein, and on that ground alone, Order dated 14.03.2013 is liable to be set aside. To support his argument, he has drawn my attention to Order of Tribunal below dated 14.03.2013 in SA 152/2008, which is the subject matter of Appeal RA (SA) 93/2018, which Appeal is also heard along with this Appeal.

Advocate for Bank submitted that each Securitisation Application has to be decided independently and it depends on challenge to the measures. He submitted, here the challenge is to the Sale Certificate dated 13.01.2009, whereas in the other Securitisation Application, the challenge is about Possession Notice and Sale Notice.

I have perused material papers and impugned Order dated 14.03.2013.

As rightly pointed out by Advocate for Bank, the other Order referred to and relied on by Appellant, is in respect of Securitisation Application challenging Possession Notice and Sale Notice. But here, the challenge is about Sale Certificate dated 13.01.2009. Tribunal below observed that as the earlier steps are not challenged by Appellant, the relief claimed in the Application is not maintainable. I do not find any wrong in the Order of Tribunal below, because issue of Sale Certificate is only consequential step for the Sale conducted, and when the said Sale is not challenged, the consequential step cannot be questioned.

As seen from the material papers, in this case, Possession Notice was issued on 20.09.2008, Sale Notice was issued on 30.09.2008 and Sale was conducted on 05.11.2008. Further, Sale Certificate is already registered and registered document is already issued. So, in view of the same, the objection of Appellant is not tenable and Tribunal below is right in dismissing the Securitisation Application and there are absolutely no grounds to interfere with said Order.

For these reasons, the Appeal RA (SA) 49 /2013 is dismissed with no order as to costs. All pending IAs, if any stand closed.