SARFAESI Act – Auction – Sale of machinery as part of land , building and machinery – Law recognises that the lender knows its interests and how to secure best value of the property given the fact that the mortgaged property had to be sold for recovery of the debts due and payable to the Bank – Issue of the valuation of the machinery – Valuation report , values the land, the building and the machinery separately – The machinery has been valued with specific reference to as many as 55 separate items under the Heading ‘Description of Machinery’ – The valuation report itself has not been disputed or challenged – Do not agree with the High Court that the machinery should have been separately auctioned or sold – This would be putting fetters and restrictions on the Bank by baring the Bank from selling the machinery along with the building and the land – Prejudice and loss caused to the Borrower is not shown and established – Auction sale as confirmed was at a price higher than the fair market valuation of the land, the building and the machinery.
read HERE 2022 SCeJ 0200
