E. Muthurathinasabathy & Ors Vs Sri International & Ors. (Supreme Court of India)
Summary: The Supreme Court dismissed the appeals arising from the dispute between E. Muthurathinasabathy & Ors. and Sri International & Ors., thereby leaving undisturbed the relief granted in the connected Madras High Court proceedings on the supplied material.
The underlying dispute concerned loan facilities renewed on 29.03.2019 to Rs.4 crores, four mortgaged properties, classification of the loan account as NPA on 25.11.2018, a notice under Section 13(2) of the SARFAESI Act dated 10.02.2020 and symbolic possession under Section 13(4) on 21.04.2020. An auction was held on 04.09.2020. During successive proceedings before the High Court, DRT and DRAT, confirmation and further steps in the sale were subject to interim directions. By order dated 15.12.2020 in C.R.P.No.2187 of 2020, the High Court permitted the bank to accept the balance sale consideration from the auction purchasers but directed that no further steps take place until disposal of S.A.No.263 of 2020.
The DRT dismissed the securitisation appeals on 31.03.2022; the sale was confirmed that day, the balance 75% was appropriated from the auction purchasers’ fixed deposits and a sale certificate was issued and registered on 18.04.2022. DRAT, by common order dated 24.11.2022, upheld the auction. Before the Madras High Court, the borrowers contended that the balance 75% had not been paid within the period contemplated by Rule 9(4) of the Security Interest (Enforcement) Rules, 2002 and that, having paid the entire outstanding amount with interest, they retained the right to redeem.
