Beaten up, electrocuted and forced to resign
of the rules requiring the deposit of 25% of the purchase-money immediately on the person being declared as a purchaser and the payment of the balance within 15 days of the sale are mandatory and upon non-compliance with these provisions there is no sale at all... in the circumstances of the present case, there was no sale and the purchasers acquired no rights at all,” the apex court said, adding that if there is a default on this, the property shall be resold immediately.
In this long, drawn-out legal battle of over two decades, the Indian Bank had advanced a loan to Sunrise Plaza, a partnership concern.
The partners of the firm had defaulted in repaying the loan, prompting the bank to move the DRT in 2001 for the recovery of the money. The property mortgaged with the bank was sold in a public auction in March 2003, which was challenged by the partners of the firm for violation of the rules. They filed a plea in 2003 for the setting aside of the auction sale.
The debt recovery appellate tribunal had allowed the stand of the partners and held that the purchasers did not act bona fide. The buyer challenged the order before the Madras High Court, contending that the rule to deposit was not mandatory, but only directory. The HC rejected his petition while concluding that the auction was illegal and void because of non-compliance with the provisions of the Income Tax Act, 1961 which in turn were in view of
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