IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No 1264 of 2010 1. M/S DHARA POLYTUBES PVT.LTD. TALWAR HOUSE , MALHOTRA ENGINEERING LANE, R.K. BHATTACHARYA ROAD,PATNA-800001, THROUGH ITS DIRECTOR SRI AMRENDRA KUMAR Versus 1. BANK OF BARODA GULJARBAGH BRANCH, GULJARBAGH,PATNA CITY 2. DY. REGIONAL MANAGER-CUM-AUTHORISED OFFICER BANK OF BARODA,REGIONAL OFFICE,BORING CANAL ROAD, PATNA ----------- 6 05.04.2010 Petitioner-Company is indebted to Bank of Boroda for setting up the industrial unit at Hajipur in the industrial area. It had taken various financial accommodations from the respondent- Bank. Petitioner-Company, having defaulted in meeting its obligations, the Bank initiated steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for securing the financial accommodation. Petitioner had offered not only the mortgage of industrial plot but offered other property of guarantor as well. Bank now intends to take possession of those properties and sell them in satisfaction of its dues. Petitioner, on the other hand, states that the Company cannot raise finance to liquidate the debt without selling the mortgage asset or part thereof. It submits that in public auction, the price that the property would fetch would be distress property causing immense loss to the petitioner and no gain to the Bank. On the other hand, if it be permitted to sell the property and deposit the entire sale proceeds with the Bank, it may recover a much better price through private negotiations. Learned counsel for the Bank very fairly states that Bank is not interested 2 in the property or selling the same. Bank’s primary and solitary interest is in recovery of its dues to the maximum. Having heard the parties and considered the matter, in my view, the just, equitable and the legal solution, keeping in interest of both the parties, would be that petitioner would negotiate for sale of the mortgaged industrial plot with third parties and within a period of three months, the third party would deposit by way of bank draft, the entire sale consideration in favour of the respondent-Bank directly to the Bank. On so deposit of the money, Bank would then issue a sale certificate to the said private party as if the sale had been affected by the Bank in terms of Section 13 (4) of the SARFAESI Act and the sale certificate would then be confirmed by the Bank accordingly without objection of the petitioner. The petitioner, upon such confirmation of sale, would then be obliged to hand over possession of the mortgaged assets at the industrial plot to the purchaser. Upon such certificate of sale being issued, the said purchaser would then step into the shoes of the petitioner-Company as the lessee of the Industrial Area Development Authority. In case the recovery is less than the dues, Bank would then be free to pursue such other remedy as may be available to it against the petitioner-Company or the guarantors in accordance with law. This disposes of the writ petition. M.E.H./ (Navaniti Prasad Singh)