IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 9TH FEBRUARY 2011 / 20TH MAGHA 1932 WP(C).No. 4085 of 2011(I) ------------------------------------ PETITIONER(S): ----------------------- V.P.KANAKKA RYI, S/O.CHATHA, AGED 55 YEARS, VELLATUPADI HOUSE, POST VALANCHERI, MALAPPURAM DISTRICT. BY ADV. SMT.T.D.RAJALAKSHMI SRI.R.SREEHARI RESPONDENT(S): ------------------------- 1. THE TIRUR CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD.NO.M II, P.B.NO.55, TIRUR-676 101. 2. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), CIVIL STATION, MALAPPURAM. PIN- 676 505 R1 BY ADV. SRI.V.G.ARUN, SC SRI.T.R.HARIKUMAR, SC FOR CARD BANK R2 BY GOVERNMENT PLEADER SRI. BASANT BALAJI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts P.N.RAVINDRAN, J. --------------------------- W.P.(C) No. 4085 OF 2011 -------------------------- Dated this the 9th day of February, 2011 J U D G M E N T The petitioner availed a housing loan from the Valancheri branch of the first respondent bank way back in the year 1996. When he defaulted repayment, the bank initiated steps under the provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 to sell the security without the intervention of the court. A sale was accordingly held on 20.10.2003 after following the prescribed procedure. In the sale, the bank purchased the property for the sum of Rs.83,938/-. Thereafter the Sale Officer sent Ext.P1 letter dated 20.10.2003 to the petitioner informing him that if within 30 days the purchase money together with future interest and a sum equal to 5% of the purchase money is not deposited, the sale will be confirmed in favour of the bank. The petitioner did not even thereafter take steps to repay the loan amount. It appears, a sale certificate was also issued in favour of the bank. Thereafter, the general body of the bank that met on 28.3.2009 granted permission to the managing committee of the bank to sell the property. The Joint Registrar of WPC No.4085/2011 2 Co-operative Societies also granted permission to sell the property on 2.9.2010. It appears, the petitioner continued to be in possession of the property and was not evicted. After obtaining the permission of the general body and the Joint Registrar of Co-operative Societies as required under rule 54(2) of the Kerala Co-operative Societies Rules, the bank took steps to sell the property which it had purchased in the public auction held on 20.10.2003. Ext.P2 sale notice was thereupon issued proposing to sell the property on 12.1.2011 along with other lands belonging to the bank. The petitioner, the sole bidder who participated in the said auction offered to pay the sum of Rs.2,33,000/-. The petitioner remitted the sum of Rs.40,000/- on 12.1.2011. He did not however remit the balance sale amount within 15 days from the date of sale namely 15 days from 12.1.2011. This writ petition is filed seeking a direction to the respondents to grant the petitioner an opportunity to pay the balance sale price in instalments and a further direction to the respondents not to forfeit the sum of Rs.40,000/- remitted by the petitioner on 12.1.2011. 2. The fact that the property belonging to the petitioner was sold in public auction and was purchased by the first respondent WPC No.4085/2011 3 bank on 20.10.2003 is not disputed. The sale held on 20.10.2003 has attained finality. Nearly 8 years thereafter with the permission of the general body and the Joint Registrar, the bank brought the property to sale. The petitioner participated in the sale by public auction. He was the only bidder and had offered to pay the sum of Rs.2,33,000/-. As per the terms of Ext.P2 tender notice the successful bidder has to deposit 15% of the bid amount on the date of the sale and the balance within 15 days from the date of sale. It was also stipulated that if the purchaser defaults payment within the said period, the initial deposit made by him will be forfeited. It was knowing the content of Ext.P2 sale notice the petitioner participated in the auction held on 12.1.2011. The attempt of the petitioner is now to evade payment of the balance sale amount in time. In other words though he was permitted to participate in the auction with a view to salvage the property he wants further time to pay the balance bid amount. This shows that the petitioner did not participate in the auction with the bonafide intention of purchasing the property, but with a view to prevent the sale of the property which presently belongs to the bank to any other person. The conduct of the petitioner in my opinion, does not entitle him to seek or obtain WPC No.4085/2011 4 enlargement of time to deposit the bid amount. I therefore find no grounds to entertain the writ petition. The writ petition fails and is accordingly dismissed with the direction that if within two weeks from today the balance bid amount is not deposited, the bank shall forfeit the sum of Rs.40,000/- deposited by the petitioner and shall also takes steps to secure possession of the property by evicting the petitioner after following the procedure prescribed in the Kerala State Co-operative Agricultural and Rural Development Banks Act and the rules framed thereunder. P.N.RAVINDRAN, (JUDGE) vps WPC No.4085/2011 5 WPC No.4085/2011 6