IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 29TH NOVEMBER 2010 / 8TH AGRAHAYANA 1932 WP(C).No. 29225 of 2010(C) -------------------------- ( DRC NO.1641/SBI/KLM OF DEBTS RECOVERY TRIBUNAL, ERNAKULAM) .................... PETITIONER: ------------------ R.PRADEEP KUMAR, S/O. LATE K.RAGHUNATHAN PARTNER, M/S.ANJALI COIR MATS AND MATTINGS, POZHIKKARA, PARAVOOR-691301. BY ADVS. SRI.S.SREEKUMAR SRI.P.MARTIN JOSE SRI.S.VAIDYANATHAN RESPONDENTS: --------------------- 1. STATE BANK OF INDIA, KOLLAM BRANCH, KOLLAM-691001. 2. RECOVERY OFFICER, DEBTS RECOVERY TRIBUNAL (KERALA & LAKSHADWEEP), ERNAKULAM-682036. ADDL. R3 IMPLEADED ---------------------------------- ADDL.R3. RAJESH R., S/.O. REGHUNADHAN, MOONAM KIZHAKKETHIL, T.K.M. C.P.O., KALI RODE, KOLLAM; ADDL.R3 IS IMPLEADED VIDE ORDER DT. 28.9.10 IN IA. NO.13408/10. R1 BY ADV SRI.R.S.KALKURA , SC, SBI R3 BY ADVS. SRI.G.HARIHARAN SRI.PRAVEEN.H. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.29225 of 2010-C ---------------------------------------- Dated this the 29th day of November, 2010. J U D G M E N T The petitioner is a partner of M/s.Anjali Coir Mate and Mattings, Pozhikkara, Paravoor. Challenge in this writ petition is against sale conducted by the 2nd respondent in D.R.C No.1641/SBI/KLM, on the basis of Ext.P3 publication, on 11.8.2010. The firm had availed financial assistance from the 1st respondent Bank by creating equitable mortgage on various items of immovable properties. Consequent to default committed in repayment of the loans availed, the 1st respondent Bank filed O.A.No.270/2003 before the Debt Recovery Tribunal and the said Tribunal had issued a recovery certificate. As per Ext.P3 notice, auction of immovable property was proclaimed by the 2nd respondent in the proceedings initiated for execution of the recovery certificate. The sale which was originally scheduled on 6.1.2010 was adjourned for want of bidder, to 11.8.2010. The property having an extent of 27.65 Ares W.P(C) No.29225 of 2010-C 2 comprised in Re-Sy.No.43/5 and 43/6 of Paravoor Village was sold in auction for a sum of Rs.21,70,000/-. 2. According to the petitioner the property sold in auction will fetch a market value of more than Rs.150 lakhs. It is stated that the petitioner had approached the 1st respondent Bank seeking settlement by offering deposit of the entire amounts due under the loan account, through one time settlement. It is further stated that the petitioner had offered a total sum of Rs.36,00,000/- through Ext.P4 representation. Meanwhile, Exts.P5 and P6 applications were filed before the 2nd respondent seeking to set aside the sale and to condone the delay in filing such application, respectively. But when steps were initiated for confirmation of the sale, the petitioner approached this Court. By virtue of an interim order issued by this Court on 22.9.2010 the 2nd respondent was restrained from confirming the auction sale, subject to condition of the petitioner depositing an amount of Rs.22,00,000/-. It is reported that the said amount was deposited by a proposed purchaser in a separate account in W.P(C) No.29225 of 2010-C 3 the 1st respondent Bank, noting lien on the deposit and a cheque, drawn in that account was already issued to the Bank. The 1st respondent had accepted the above deposit as proper compliance of the conditions imposed. 3. The auction bidder was impleaded as additional 3rd respondent. It is stated in the counter affidavit filed by the 3rd respondent that, pursuant to the sale he had deposited the entire bid amount. Copies of the receipts for payment are produced as Ext.P3(a) and R3(b). It is stated by the 3rd respondent that the amount was raised with much difficulty and that he is excepting confirmation of the sale in order to proceed with further steps for getting the sale certificate and for getting delivery of the property. 4. This is a case in which the petitioner is offering payment of the entire amount due to the 1st respondent Bank. Despite the sale taken place for a lesser amount, the petitioner is now offering full and final settlement of the loan account. It is conceded by the petitioner as well as by the counsel appearing for the 1st respondent Bank that, W.P(C) No.29225 of 2010-C 4 pursuant to approach made by the petitioner a settlement was arrived with respect to payment of amounts due and for closing of the loan account in question. The fact remains that the sale has not yet been confirmed. However, it is evident that the auction purchaser had already deposited the bid amount. Under such circumstances, I am of the view that the matter can be settled. It is only just and proper to permit the petitioner to make payment of the entire amount due to the Bank in order to close the loan account with a view to save the property from being sold. At the same time the auction purchaser shall be refunded with the amount deposited along with reasonable interest. 5. Under such circumstances, the writ petition is disposed of directing the petitioner to settle the payments due under recovery certificate, in accordance with the agreement if any arrived, within a period of one month from the date of receipt of a copy of this judgment. Needless to say that the 1st respondent Bank will be at liberty to adjust the amount of Rs.22,00,000/- already deposited, pursuant to W.P(C) No.29225 of 2010-C 5 the interim order of this Court. The petitioner will also make payment of an additional sum equivalent to interest due on the amount deposited by the 3rd respondent, at the rate of 12%, calculated from the date of deposit onwards till repayment. If the amount is closed as directed above, the 2nd respondent shall return the amount deposited by the 3rd respondent along with interest as mentioned above, without any further delay. 6. It is made clear that, if there is any failure on the part of the petitioner in settling payment of the amount as directed above, it is left open to the 2nd respondent to proceed with further steps for confirmation of the sale. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab W.P(C) No.29225 of 2010-C 6