Banking - A borrower has no right to raise any argument objecting to the sale of secured property by one secured creditor ( in cases wherein, borrower has made substantial payment to other secured creditors)

The Hon'ble Punjab and Haryana High Court recently held in M/s Veetee Fine Foods Ltd. Vs Punjab National Bank & Ors. that a borrower has no right to raise any arguments objecting to the sale of secured property by one secured creditor. In this case, borrower had availed loan from three banks. While so, he repaid the amount to one bank, and other bank, he made substantial payment. However, he never made any payment to third bank. The third bank brought the property to sale. Thereafter, the third bank initiated steps under SARFAESI Act and the borrower objected the same taking aid of Section 13(9). It is in this context, the Hon'ble High Court brought rendered this decision. The relevant portion of the judgement is extracted herein under; 

"We find that the substantial amount has been paid by the petitioner to the two Banks up to and before 31.3.2014. As on now, only nominal amount of Rs.25 lakhs in case of one Bank and Rs.20 lakhs in case of another Bank remains to be paid. It shows that the claim of two Banks stands substantially settled having paid almost Rs.37 Crores to these Banks. In view of the Delhi High Court judgment in Chemstar Organic India Ltd. (Supra), the petitioner- a borrower has no right to raise an argument objecting to the sale by one secured creditor. We respectfully agree with the view of the Hon'ble Delhi High Court."