CWP No.2357 of 2009 -: 1 :- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.2357 of 2009 Date of decision: February 16, 2009. Ms. Mini Walia & Ors. ...Petitioner(s) v. Corporation Bank & Ors. ...Respondent(s) CORAM:HON'BLE MR. JUSTICE SURYA KANT 1. Whether Reporters of local papers may be allowed to see the judgment ? 2. Whether to be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? Present: Shri Pankaj Bhardwaj, Advocate with Sarv Shri Amit Dhawan & Ashok Khichi, Advocates for the petitioners. Shri A.P. Jagga, Advocate for caveator-respondents. ORDER Surya Kant, J. - (Oral): Notice of motion. Mr. A.P. Jagga, learned counsel for the caveator, accepts notice on behalf of the respondents. He has filed a short reply, which is taken on record. Heard Learned Counsel for the parties and perused the pleadings. The petitioners seek quashing of the notice dated 18.01.2009 (Annexure P-9) published in the daily newspaper 'The Hindustan Times” CWP No.2357 of 2009 -: 2 :- whereby the respondent-Bank has proposed to sell the property bearing plot No.223, Milk Colony, Dhanas, Chandigarh towards discharge of the loan liability. Shorn of the details, suffice it to mention that petitioners No.1 & 2 took a personal loan of Rs.15 lacs from the respondent-Bank and petitioner No.3 stood guarantor for the same. The plot No.223, Milk Colony, Dhanas, U.T. Chandigarh was also mortgaged with the Bank to secure the aforesaid loan which bears account No.CMORT/01/070004. While the petitioners' case is that the afore-stated entire loan amount has been paid, the respondents, in their short reply, have disputed it and claim that about Rs.1 lac more is liable to be paid. There is yet another loan, i.e., a car loan of Rs.8.20 lcas which petitioner no.2 had taken from the respondent-Bank for the purchase of Toyota Innova car. The account number of the said loan is CMOBI/01/060040. The petitioners' main grievance appears to be that even though property bearing No.223, Milk Colony, Dhanas was mortgaged and is a secured asset only for the personal loan of Rs.15 lacs taken by petitioners no.1 & 2, the respondent-Bank is treating the same as a security towards the car loan also. During the course of hearing and with the intervention of this Court, both the parties have consented for the disposal of this writ petition in the following agreed terms and directions:- (i) the petitioner shall give six post-dated monthly cheques of Rs.1,40,000/- each towards payment of the car loan which shall be repaid before 31st August, 2009; CWP No.2357 of 2009 -: 3 :- (ii) in case all the cheques are honoured, the respondent-Bank is directed to re-deem the mortgage and return the title deed of the subject property to the petitioner before 5th September, 2009; (iii) in case the petitioners are unable to arrange the funds on their own, they may negotiate for the disposal of the mortgaged property, however, there shall be tripartite agreement to sell and the respondent-Bank shall be a party thereto; (iv) the prospective buyer shall firstly discharge the entire loan liability of the respondent-Bank and then only the mortgaged property shall be re-deemed and title deeds returned within three days; (v) the petitioners shall also be entitled to negotiate with any other Bank for advancement of loan to them against the mortgaged property and in that event, the new mortgagee bank shall firstly pay the entire loan amount to the respondent-Bank and on payment thereof, the property shall be re-deemed and title deeds shall be returned in the same manner, as directed at No.(iv) above; (vi) in case the petitioners want to mortgage the subject property to any other bank, as stated above, the respondent- Bank would facilitate the inspection of the mortgaged property by the new mortgagee bank; (vii) in case the petitioners discharge their entire loan liability before 30th April, 2009, no penal interest shall be charged CWP No.2357 of 2009 -: 4 :- from them. Similarly, the monthly installment of Rs.1,40,000/- as has been fixed above, includes the component of interest/penal interest also. In other words, if the petitioners pay the installments as directed above, the car loan account shall also be deemed to have been closed. However, in the event of default, the respondent-Bank shall be entitled to recover the outstanding dues with interest/penal interest in terms of the loan documents. In view of these directions, further action in terms of the impugned notice shall remain in abeyance. Disposed of. February 16, 2009. [ Surya Kant ] kadyan Judge