The Debts Recovery Appellate Tribunal (DRAT), Mumbai Bench comprising Justice Ashok Menon, Chairperson was hearing an appeal and held that the appellant, as a purchaser, had the right to redeem the mortgage and retrieve the title deeds from the bank.
In the present case, the appellant, who is a third-party purchaser of two flats in Mumbai, challenged the dismissal of the Securitisation Application by the Debts Recovery Tribunal. The appellant claimed to have purchased the property and was in possession of the flats. The appellant argued against the SARFAESI measures taken by the bank, stating that the outstanding amount could be recovered by selling one of the flats and that the reserve price for the flats was inadequate. The e-auction of the properties failed, but the DRT decided to dispose of the application on its merits. The DRT dismissed the application, stating that the appellant had no legal right over the property as the purchase was made during the mortgage period, and there were doubts about the genuineness of the sale.
The appellant deposited the entire outstanding debt with the Appellate Tribunal and sought the release of the title deeds.
The Appellate Tribunal held that the appellant, as a purchaser, had the right to redeem the mortgage and retrieve the title deeds from the bank. The Appellate Tribunal directed the bank to release the title deeds to the appellant.
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