CWP No.18367 of 2010.doc - 1 – HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** CWP No.18367 of 2010 Date of Decision: 26.10.2010 **** Smt. Bala Devi . . . . Petitioner VS. Union Bank of India & Ors. . . . . Respondents **** CORAM : HON’BLE MR.JUSTICE SURYA KANT **** 1. Whether Reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest? **** Present: Mr. Anil Kshetarpal, Advocate for the petitioner Mr. Sukhvinder Singh, Advocate for respondent No.1 Mr. JS Chahal, Advocate for respondents No.2 & 3 ***** SURYA KANT J. (ORAL) (1). The petitioner-Guarantor seeks a prohibitory direction to restrain respondent No.1-Bank from auctioning her property to recover the loan due from the borrowers, namely, respondents No.2&3, without first selling the borrower’s own property which is also mortgaged with the Bank. (2). Learned counsel for respondent No.1-Bank fairly states that firstly the mortgaged property of respondents No.2&3 only shall be put to auction and if there remains any balance, the same shall be recovered from the petitioner being the Guarantor. He further informs CWP No.18367 of 2010.doc - 2 – that the total arrears of loan amount are approximately `25 lacs and the value of the mortgaged property owned by respondent No.2&3 is about `12 lacs only. (3). Learned counsel undertakes that the petitioner would pay the remaining loan amount after the sale of the mortgaged property of respondent No.2&3. He further submits that the petitioner is also willing to furnish FDRs worth `25 lacs in favour of respondent No.1-Bank for the immediate release of title deeds of her property as she intends to dispose of same at the earliest. (4). The above-stated offer is acceptable to counsel for the respondent-Bank also. (5). In this view of the matter, the writ petition is disposed of with the following directions:- (i) Respondent No.1-Bank shall firstly put to auction the mortgaged property owned by respondent No.2&3 and after adjusting its sale proceeds that the balance loan amount shall be recovered from the petitioner. The mortgaged property shall be put to auction and the sale shall be finalized within a period of three months from the date of receipt of a certified copy of this order; CWP No.18367 of 2010.doc - 3 – (ii) The petitioner shall be liable to pay the balance loan amount which the respondent-Bank shall be entitled to deduct from the petitioner’s FDR of `25 lacs; (iii) The title deed of petitioner’s property shall be released by the respondent-Bank as soon as she deposits FDRs of `25 lacs; (iv) The balance amount, after deducting the arrears of loan from the FDRs, shall be refunded to the petitioner within one week. (6). Disposed of accordingly. (7). Dasti . (SURYA KANT) JUDGE 26.10.2010 vishal shonkar