Case Law Details
State of Himachal Pradesh And Others Vs A.J. Infrastructures Pvt Ltd And Anr. (Supreme Court of India)
Supreme Court held that as the State of Himachal Pradesh didn’t took any steps for realization of its dues, recourse to Himachal Pradesh Land Revenue Act (HPLR Act) for recovery of dues as arrears of land revenue not sustainable.
Facts- The first respondent had purchased the subject property in an auction conducted by the State Bank of Patiala in exercise of power conferred by the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act). The subject property was initially mortgaged with the Himachal Pradesh Financial Corporation (HPFC) by M/s. Regent Rubber Private Limited (Regent). Due to breach committed by Regent, HPFC took over the property and sold it in an open auction to M/s Eastman Rubber (Eastman). The subject property was thereafter mortgaged by Eastman with the State Bank. However, Eastman too having committed default in liquidating its dues, the subject property was eventually put up for sale in an open auction under rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 (SARFAESI Rules).
The first respondent emerged as the highest bidder in the auction. Within the stipulated time, the first respondent paid the entire bid amount whereupon in accordance with the provisions of rule 9(6) and (10) of the SARFAESI Rules, sale certificate was issued.
After issuance of the sale certificate, the State Bank informed various authorities including the taxation department of the State of sale of the subject property to the first respondent. In due course of time, the first respondent obtained permission from the State and consequently was able to have the sale deed executed and registered.
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