Allahabad High Court
Pranav Kumar Tripathi vs U.P. State Industrial Development ... on 19 February, 2020
Equivalent citations: AIR 2020 ALLAHABAD 151, AIRONLINE 2020 ALL 741
Bench: Pankaj Kumar Jaiswal, Karunesh Singh Pawar
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH ?Court No. - 1 Case :- MISC. BENCH No. - 33596 of 2019 Petitioner :- Pranav Kumar Tripathi Respondent :- U.P. State Industrial Development Authority Lko. & Ors. Counsel for Petitioner :- Asit Srivastava Counsel for Respondent :- Alok Saxena,Manoj Sahu,Prashant Kumar,Sanjeev Sinha,V.K.Singh Hon'ble Pankaj Kumar Jaiswal,J.
Hon'ble Karunesh Singh Pawar,J.
Heard Sri Asit Srivastava, learned counsel for the petitioner, Sri Alok Saxena and Sri Manoj Sahu, learned counsel for the respondents no. 2-State Bank of India.
By this writ petition under Article 226 of the Constitution of India, the petitioner is praying for following reliefs :-
"i. Issue a writ, order or direction in the nature of mandamus directing the respondents to make available the All that part and parcel of the property consisting of premises on A-2/7, UPSIDC Industrial Area, Sandila, District Hardoi, U.P. measuring 675.24 Sq. Mtr. since the Sale Certificate stands issued in favour of the petitioner on 20.12.2018 by the respondent no.2, who initiated the proceedings for sale of aforesaid property in question through e-auction alongwith several other properties, by the advertisement published on 09.11.2018 by incorporating the similar terms and conditions as was incorporated between M/s TexChem Dyes & UPFC in the proposed Registration of sale deed;
or in alternate ii. Issue a writ, order or direction in the nature of mandamus directing the respondent no.2 that the petitioner be refunded the entire amount deposited towards the property in question, before the respondent no.2 along with interest at the prevalent bank rate of interest.
iii. Issue an ad-interim mandamus to the above effect.
iv. Issue any other writ, order or direction in the nature in which this Hon'ble Court deems fit and proper in the circumstances of the case, in favour of Petitioner.
v. Cost of the Writ Petition may be awarded in favour of the Petitioner."
Brief facts of the case are that pursuant to e-tender sale notice dated 09.11.2018 issued by the respondent no.2-State Bank of India with regard to several properties including the property i.e. A-2/7, UPSIDC Industrial Area, Sandila, District Hardoi under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with Security Interest (Enforcement) Rules, 2002, the petitioner participated in e-tender held on 10.12.2018. As the bid of the petitioner was highest, therefore, after completion of all the necessary formalities, a sale certificate was issued in favour of the petitioner on 20.12.2018 and fixed the date for execution of the sale deed for 26.2.2019. But vide e-mail dated 24.02.2019 (Annexure-7), the petitioner had requested to postpone the agreed date of 26.2.2019 for sale deed registration until further information due to pending dues of the respondent no.1-U.P. State Industrial Development Authority on the said property. Subsequently, the petitioner has filed writ petition with the relief, as mentioned hereinabove.
Sri Alok Saxena, learned counsel for the respondent no.2-Bank has drawn our attention to Clause No. 1 and 2 of the terms and conditions of the E-auction sale notice dated 09.11.2018 (Annexure CA-1) and has submitted that as per Clause-1, auction was held on "as is where is" and "as is what is basis", whereas as per Clause-2, the intending bidders should make their own independent enquiries regarding the encumbrances, title of the property put on auction and claims/rights/dues/affecting the property, prior to submitting their bid. Clause 1 and 2 of the terms and conditions of the E-auction sale notice dated 09.11.2018 (Annexure CA-1), which are relevant, read as under :-
"1. E-Auction is being held on "AS IS WHERE IS" and "AS IS WHAT IS BASIS" and will be conducted "On Line". The auction will be conducted through the Bank's approved service provider M/s C1 India Pvt. Ltd.) at the web portal https://bankeauctions.com. E-Auction Tender Document containing online e-Auction bid form, Declaration, General Terms and Conditions of online auction sale are available in websites https://bankeauctions.com, https://magicbricks.com, https://www.sbi.co.in, https://tenders.gov.in.
2. To the best of knowledge and information of the Authorised Officer, there is no encumbrance on the property/ies. However, the intending bidders should make their own independent inquiries regarding the encumbrances, title of property/ies put on auction and claims/rights/dues/affecting the property, prior to submitting their bid. The e-Auction advertisement does not constitute and will not be deemed to constitute any commitment or any representation of the bank. The property is being sold with all the existing and future encumbrances where known or unknown to the bank. The Authorised Officer/Secured Creditor shall not be responsible in any way for any third party claims/rights/dues."
The stand of the respondent no.2-Bank is that if there is outstanding dues in respect of the property in question, which was mortgaged by M/s Amit Heterochem Labs India Ltd. in favour of U.P. State Industrial Development Authority and as per lease deed dated 2.12.1977 executed between U.P. State Industrial Development Authority and original borrower, dues was not paid, therefore, auction of the property in question was initiated under Section 29 of the U.P. Finance Corporation Act, 1951 and, therefore, until and unless the dues are not paid, no sale deed can be executed in favour of the petitioner.
To counter the aforesaid stand, learned counsel for the petitioner has submitted that he has not received any acknowledgement from the U.P. State Industrial Development Authority and U.P. Financial Corporation, therefore, dues could not be cleared. The petitioner, through counter affidavit, came to know the aforesaid dues. However, the petitioner is ready to pay the dues and obtain 'No Objection Certificate' from the concerned department so that sale deed may be executed in pursuance to the sale certificate dated 20.12.2018.
On due consideration, we, without issuing any direction to the respondent no.2-Bank to refund the auction money with interest, direct the petitioner to clear the dues of U.P. State Industrial Development Authority and after obtaining 'No Objection Certificate' as well as after completion of all the required formalities, the petitioner shall approach the respondent no.2-Bank so that sale deed may be executed in favour of the petitioner in pursuance to the e-auction sale notice dated 9.11.2018.
With the aforesaid, the writ petition stands disposed of finally.
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(Karunesh Singh Pawar, J.) (Pankaj Kumar Jaiswal, J.) Order Date :- 19.2.2020 Ajit/-