Merely by including a clause "as is where is" basis or "as is what is" condition in the sale notice does not obviate the bank from disclosing the encumbrance attached to the property brought for in auction - petitioner entitled for the refund of Earnest money.

Citation

2018-1-L.W. 15 S.N.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

23.01.2018/ Writ Petition No.16579 of 2016

S.Manikumar, J., and V.Bhavani Subbaroyan, J.

1V.Sridhar.                    .. Petitioner

Versus

The Authorized Officer Indian Bank, Guindy Branch GST Road, Guindy Chennai-32abe

.. Respondent

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) (2002), Sections 13(a), 14. Security Interest Enforcement Rules, (2002), Rule 9(9), Auction, Earnest money refund, scope

Challenge to auction Earnest money - refund - whether permissible of 'as is where is' clause, what is - Effectwhen tender-cum-e-auction sale was notified respondent bank had not taken physical possession of property              Para 15

authorised officer shall deliver property to purchaser free from encumbrances known to secured creditor on deposit of money as specified in sub-rule 2 – Bank is duty bound to disclose encumbrances, attached to properties and litigations or occupation by a tenant if there is any lis or lien attached to the property

Merely by including a clause "as is where is" basis or "as is what is" condition in the sale notice does not obviate the bank from disclosing the encumbrance attached to the property brought for in auction (Para 19) - petitioner entitled for the refund of Earnest money deposit and amount received by the respondent bank subsequently

Para 25