2024 (9) TMI 1403 - HC - Indian Laws

Auction purchaser of secured asset - Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - HELD THAT - The Judgment of the Apex Court in GOVIND KUMAR SHARMA ANR. VERSUS BANK OF BARODA ORS. 2024 (5) TMI 364 - SUPREME COURT was rendered in the circumstances where the entire money has been refunded and there has been no issue of delivery of possession of property. In the instant case respondent-bank as already noted above has undertaken the endeavour to deliver possession of the subject property to the petitioner. In that view of the matter this Court do see any justification in petitioner claiming compound interest on the amount deposited. However, this Court is of the considered view that petitioner is entitled for simple interest at the rate of 12% p.a. for the period claimed in the writ petition. Petition disposed of.

Summary

Issues:
1. Petitioner seeking possession of property after winning public auction.
2. Petitioner claiming interest on fixed deposit and refund of TDS amount.
3. Petitioner requesting original documents of title from respondent-bank.

Analysis:
1. The petitioner, an auction purchaser of a property through a public auction conducted by the respondent-bank, filed writ petitions seeking possession of the property and delivery of keys. The petitioner argued that the bank was obligated to provide peaceful possession post-sale, citing relevant judgments. The respondent-bank had initially withheld possession due to legal proceedings initiated by the original borrower but later issued a sale certificate. The court held that the bank must deliver possession to the petitioner as per law.

2. In another writ petition, the petitioner claimed interest on the bid amount deposited in fixed deposit and refund of TDS amount not deducted by the bank. The court noted the delay caused by legal proceedings and the petitioner's additional payment to the tax authorities. The petitioner sought a refund of the TDS amount and interest. The respondent-bank agreed to refund the TDS amount but disputed the interest rate. The court, considering the circumstances and the bank's readiness to refund, ordered the bank to pay simple interest at 12% p.a. to the petitioner.

3. Additionally, the petitioner filed a petition seeking the delivery of original title documents by the respondent-bank. The bank assured the court of cooperation in obtaining necessary orders for possession delivery. The court directed the bank to provide the original title deeds to the petitioner, stating that this relief was consequential to the possession delivery. The judgment highlighted the bank's undertaking to complete the required actions within 90 days from the date of the order, emphasizing compliance with the directives.