Brief:
MB Casting Pvt Ltd. (Client) approached Akarsh Mathur and Associates to challenge an auction notice issued by Punjab National Bank (PNB). The auction was intended to recover debts owed by the client. The client argued that the reserve price (minimum acceptable bid) for the auction was unfairly low compared to the property’s actual value.
Action Taken:
Akarsh Mathur and Associates filed a Securitization Application under relevant Indian financial laws. This application challenged the legality of the auction notice. The case was presented before the Presiding Officer of the Debts Recovery Tribunal, Jaipur.
Outcome:
- The Tribunal immediately granted a stay order, temporarily halting the scheduled auction.
- The Tribunal ordered PNB to file a formal response to the application and prevented them from issuing a sale certificate until a further hearing.
- In a subsequent hearing, another stay order was granted, further protecting the client’s interests.
Key Takeaways:
- This case demonstrates how legal action can protect businesses facing property auctions stemming from debt recovery processes.
- Akarsh Mathur and Associates’ swift intervention and strong representation helped secure a positive outcome, preventing MB Casting Pvt Ltd. from potentially losing their property at an undervalued price.
