Skip to main content

Bank can sell vehicle seized due to default through public auction with prior written notice to the debtor

In ICICI BANK vs AMIT KURI, appeal was filed before the Delhi High Court by the Petitioner aggrieved by the order of the Trial Court in simplicitor adjourning the proceedings and not granting permission under Order XXXIX Rule 6 CPC for sale of the vehicle which has been taken into custody by the receiver appointed by the Court.

The Petitioner contended that the respondent defaulted in making the payment of the instalments and accordingly the subject suit for recovery was filed against the respondent and application was moved to the concerned Trial Court for appointment of a receiver to take over possession of the subject vehicle. The possession of the vehicle was taken over on 02.04.2018. Application under Order XXXIX Rule 6 CPC was filed on 14.08.2018 seeking permission to sell the vehicle. The application is stated to be pending and no order on the application has been passed despite passage of substantial period.

Order XXXIX Rule 6 of the Code of Civil Procedure deals with interim sale of movable property and states that the Court may, on the application of any party to a suit, order the sale, by any person named in such order, and in such manner and on such terms as it thinks fit, of any movable property, being the subject-matter of such suit, on attached before judgment in such suit, which is subject to speedy and natural decay, or which for any other just and sufficient cause it may be desirable to have sold at once.

The Petitioner referred to the judgment of the Delhi High Court in M/s. ICICI Bank Ltd vs. Kamal Kumar Garewal, which had laid down the process for interim sale on application under Order XXXIX Rule 6  of the Code of Civil Procedure and also contended that delay in sale of the repossessed vehicle substantially diminishes the realisable market value of the vehicle causing loss to the bank.

The Delhi High Court accepted the argument of the Petitioner and allowed the appeal.

Comments

Post a Comment

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more

Flat owner without legal title has consumer rights

In a significant judgment, the South Mumbai Consumer Forum has held that a flat owner legally occupying the flat would be a consumer, even if his title to the flat might be in dispute before a competent court. Thurlow owned a flat in a co-operative society. Appuswami was residing with him. In 1976, Appuswami got married in the same flat, and his wife started residing in the same flat. They had three children, born and brought up in the same flat. After Thurlow expired in 2004, Appuswami approached the High Court for inheritance to Thurlow's estate but expired while the matter was pending. His wife and children were brought on record. Subsequently, the society intervened, contending Appuswami did not have any right to the flat and it should be handed over to the Society. The Appuswami family continued to reside in the flat, and even pay the society's outgoings and maintenance charges. Later, the society stopped collecting maintenance charges from all members, as it earned...
Post a Comment
Read more

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subs...
Post a Comment
Read more