SC asks Indian Bank to seek HC nod to auction Balaji Agrichem property
This story was originally published at 18:34 IST on 3 January 2025
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NEW DELHI – The Supreme Court on Friday asked Indian Bank to move the Andhra Pradesh High Court to seek lifting of a stay on the auction proceedings of three mortgaged properties of Balaji Agrichem. The apex court asked the high court to decide the plea filed by Indian Bank for vacation of stay or make a final decision in the case expeditiously or preferably in a period of three months.
The high court was hearing a plea by Balaji Agrichem seeking to set aside the action of Indian Bank to conduct the auction of three properties. The high court noted its previous 2018 ruling which held there had to be a gap of 30 days between the issuance of sale notice under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, and the publication of auction notice under Rule 9(1) of the 2002 rules.
In this case, the sale notice was issued on Aug. 6, whereas publication of the auction notice was issued on Aug. 9, said the high court. "For the reasons above, we stay the auction proceedings with liberty to the bank to issue a fresh notice by strictly complying with the provisions of the Security Interest (Enforcement) Rules, 2002, and in particular, the timelines prescribed under Rule 8(6) and Rule 9(1) of the Rules, 2002," said the high court.
Challenging this, the bank moved the apex court and said the 2018 ruling noted by the high court was not only bad in law but clearly against the legislative intent and objects of Securitization and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002. The high court had erred in entertaining the writ petition without any justification despite the availability of alternate remedy and other provisions of Section 17 of the 2002 Act, said the bank.
Solicitor General Tushar Mehta, appearing for Indian Bank, said that banks were facing problems with the interpretation of Rule 8(6) and Rule 9(1) of the Security Interest (Enforcement) Rules, 2002. To this, the apex court asked the solicitor general to pose the arguments regarding the rules and other precedents in the high court.
On Friday, shares of Indian Bank ended 0.2% higher at INR 524.35 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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