Refulgent Buildcon LLP Vs K.N. Wire Private Limited and Others (Calcutta High Court)
The Calcutta High Court allowed an appeal concerning the possession of property acquired by the appellant through an e-auction conducted after the borrower defaulted on its loan. The appellant purchased the property through an e-auction notice dated July 10, 2025, obtained a sale certificate on August 20, 2025, a registered sale certificate deed on August 21, 2025, and mutation on September 10, 2025. Following an order under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), symbolic possession was given to the appellant. After the appellant paid outstanding Kolkata Municipal Corporation (KMC) dues, the property was de-sealed and physical possession was obtained.
The Trial Court had found a prima facie case and urgency but directed the parties to maintain status quo. The appellant sought a specific injunction protecting its possession and access.
The High Court considered three questions: whether the appellant was in legally valid possession; whether the respondents had locus standi to dispute the appellant’s title and possession; and the scope for considering additional documents in an appeal against an ad interim injunction.
On possession, the Court held that the appellant had acquired valid title through the auction sale. Relying on ITC Limited vs. Blue Coast Hotels Limited and Others, it observed that symbolic possession under Section 14 was lawful and could subsequently be converted into physical possession. The Court held that payment of KMC dues merely removed the encumbrance caused by the municipal sealing, and the appellant, as owner, was entitled to possession. It also rejected the objection concerning Appendix-V under Rule 9(6) of the Security Interest (Enforcement) Rules, 2002, holding that the Appendix-V format was merely a proforma and physical possession could be taken after issuance of the sale certificate.
