Secured Creditor/Bank are under an obligation to provide detailed information in Auction regarding any litigation pending before any Court or Tribunal – State Bank of India Vs. Sri Anil Kumar Sahoo – DRAT Kolkata
A SARFAESI Application under Section 17(1) of SARFAESI Act, 2002 was filed by the Respondent for cancelling the auction sale and for refund of the deposit money of Rs. 18,72,760/- on the ground that he is an auction purchaser in an auction sale held on 06.08.2016. The required amount as per law was deposited by him. Despite depositing the amount possession was not delivered to him. DRAT held that Secured Creditor was under an obligation to provide detailed information regarding any litigation pending before any Court or Tribunal. But the same was not provided by the secured creditor. Accordingly, there was violation of Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. Ld. DRT has rightly arrived at a finding. I do not find any merit in the Appeal. Appeal is liable to be dismissed.
