Penal Code, 1860–Secs. 420, 406 & 120-B–Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002–FIR against the conduct of auction proceedings–Sustainability–Upon failure of the firm to repay the loan amount, the loan was declared as NPA and the tender auction notice was issued after following the due process–As per the auction note, the plant and machinery were to be auctioned first and, thereafter, if the entire loan amount is not recovered than the land of the respondent no. 2 was to be auctioned–Respondent no. 2 failed to show that how the prejudice was caused to him–Courts below failed to appreciate that the auction proceedings had been challenged by the petitioner which was dismissed–The price higher than the reserve price had been received against the joint auction of the plant and machinery and land–Petitioners and complainant never came in the contract prior to the auction and no property was delivered to them by the respondent no. 2–Ingredients to constitute the offence u/ss. 420 & 406 are not made out–Proceedings are liable to be quashed.
