The Supreme Court reprimanded PNB.
The Supreme Court has reprimanded Punjab National Bank. The court said, after the auction, the agreement with the borrower is wrong. The court asked the bank to take a policy decision as soon as possible so that such incidents do not happen again. A bench of Justice JB Pardiwala and Justice Sandeep Mehta directed PNB to issue a final sales certificate to the auction buyer.
Explain that the Supreme Court was hearing a petition filed by the auction buyer, rather than issuing the sales certificate, was related to the bank’s decision to refund the sales amount submitted by it.
According to media reports, the court while hearing the petition said that this is a tragic situation for a National Bank. Justice Pardiwala said, why are banks not paying attention to it. He should not do this or else no one will participate in the auction. With this, both financial institutions and banks will remain in deficit. No one will come forward to buy safe property.
How to compromise without telling the buyer?
The Supreme Court questioned how the Punjab National Bank reached a compromise without telling the auction buyer. Justice Pardiwala questioned the bank that if you had to compromise, should you not have included the auction buyer in the proceedings of the Lok Adalat? This is collusion.
What is the matter?
PNB started the recovery proceedings against the borrower under the Sarfaesi Act. The borrower filed a petition before the Debt Recovery Tribunal (DRT) in Dehradun. The recovery proceedings were challenged in this. In the case of DRT, the PNB and the borrower signed an agreement with the National Lok Adalat. While the property was already auctioned by the property.
Please tell that the auction buyer had deposited 42 lakhs through RTGS. The bank claimed that it was not aware of this. The bank said that when he came to know about the money being deposited, he returned the amount. Later, the DRT called the manager and general manager in the proceedings filed by the borrower. PNB filed a petition in the High Court against the order of DRT. The High Court issued a notice on the petition.
The buyer filed a petition in the High Court
Troubled by the work of the bank, the auction buyer filed a petition in the Supreme Court against the order of the High Court. At the same time, the Supreme Court summoned the CMD of the bank in the court on Wednesday. During the hearing, India’s Attorney General R Venkatarmani appeared on behalf of PNB and believed that there was a mistake from the bank. The court recorded the AGI’s statement that the bank would immediately withdraw its petition from the Allahabad High Court and then issue the final cell certificate to the auction buyer.