HC Dismisses Plea Against Auction of Mortgaged Asset

Case Details: Nazir Ahmad Bhat vs. Chairman/ Managing Director J&K Bank Corporate Office - [2026] 182 taxmann.com 310 (HC-Jammu & Kashmir and Ladakh)

Judiciary and Counsel Details

Sanjeev Kumar & Sanjay Parihar, JJ.
Tariq M. Shah & Zahid Ahmad, Advs. for the Appellant.
Ms Insha Rashid & Ms Taniya, Advs. for the Respondent.

Facts of the Case

In the instant case, the petitioner-borrower availed a cash credit facility from the respondent-bank, secured by a mortgage of an immovable property. Due to default, the account was classified as NPA. The possession notice was issued under section 13(4) of the SARFAESI Act.

The Bank issued an e-auction notice under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, for the of a sale secured asset, and later issued an addendum extending the bid submission deadline and rescheduling the auction date. The Successful bidder deposited consideration, and a sale certificate was issued.

The petitioner then challenged the possession notice, the e-auction notice, the addendum and the sale certificate, alleging deprivation of the statutory 30-day period under Rule 9(1) to clear dues.

High Court Held

The High Court held that the petitioner was not deprived of a 30-day opportunity, as he had more than three months from the initial auction notice to date of the auction to redeem the secured asset; thus, the contention was untenable. Further, since the petitioner failed to clear outstanding dues despite sufficient opportunity, the petition was liable to be dismissed.

List of Cases Reviewed

M. Rajendran v. KPK Oils and Protiens India (P.) Ltd. [2025] 178 taxmann.com 574 (SC)/2025 LiveLaw (SC) 931 (para 12) followed
Mathew Varghese v. M. Amritha Kumar [2014] 44 taxmann.com 137/125 SCL 209 (SC)/[2014 (5) SCC 610] (para 15) distinguished