IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 5TH NOVEMBER 2009 / 14TH KARTHIKA 1931 WP(C).No. 29412 of 2009(V) -------------------------- PETITIONER(S): --------------- 1. AMBI, S/O.LATE SUKUMARAN, ROHINI, NORTH ARYAD P.O., ALAPPUZHA. 2. JAYANANDA MALLAN, S/O.LATE VENKITESWARA MALLAN, KANDELATTU KANAKKU, MARARIKKULAM NORTH VILLAGE, S.L.PURAM P.O., CHERTHALA. BY ADV. SRI.B.PRAMOD RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, CANARA BANK, RECOVERIES AND LEGAL SECTION, REGIONAL OFFICE, ERNAKULAM. 2. CANARA BANK, MAYITHARA BRANCH, CHERTHALA, ALAPPUZHA, REPRESENTED BY ITS MANAGER. 3. HUXALAL M.R., M/S.M.S.FUELS, S.L.PURAM P.O., MARARIKKULAM NORTH, RESIDING AT MUKKALIL HOUSE, PALAMEL VILLAGE, KUDASSANAD P.O., MAVELIKKARA. 4. DR.MRUDULAL, M/S.M.S.FUELS, S.L.PURAM P.O., MARARIKKULAM NORTH, RESIDING AT MUKKALIL HOUSE, PALAMEL VILLAGE, KUDASSANAD P.O., MAVELIKKARA. ADV. SRI.P.GOPINATHA MENON, SC, CANARA BANK FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.29412 OF 2009 ------------------------------ Dated this the 5th day of November, 2009 J U D G M E N T ---------------------- 1. Petitioners are the decree holders in Ext.P1 and P5 decrees obtained against the 3rd respondent. According to the petitioners execution petitions are pending before the competent civil court for realising the amounts covered under Ext.P1 and P5 decrees. In Ext.P1 decree the petitioners got attachment of some immovable properties owned by the 3rd respondent and the petitioners are now proceeding against the said property. While so, it is learnt that the very same property is under mortgage created with the 2nd respondent for securing a loan availed by respondents 3 and 4. It is further learnt that consequent to default committed by respondents 3 and 4 in repayment of the loan amounts, respondents 1 and 2 had already initiated proceedings against the said property under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It is revealed that on taking over possession of the property under Section 13(4), the respondents 1 and 2 had now proclaimed sale of the property, as evidenced by Ext.P7 notice. But in the W.P.(C).29412/09-V 2 meanwhile the petitioners came to know that the respondents 1 and 2 are taking clandestine steps for effecting private sale of the property to a third person without conducting public auction. It is alleged that the said third person had already been put in possession of the properties. Complaint of the petitioners is that if the property is not sold through public auction, the petitioners may be prevented from purchasing the property, which they are intending to do as part of their attempt in realisation of the amounts covered under Ext.P1 and P5 decrees. It is apprehended that the respondents 1 and 2 may effect private sale of the property to the third person with whom they are interested, and on such an event the interest of the petitioners will be defeated. 2. Standing counsel appearing for the respondents 1 and 2 had opposed the writ petition disputing locus standi of the petitioner to challenge the method by which the Bank is proposing to conduct sale of the property. It is submitted that the petitioners are strangers as far as the Bank transaction is concerned and the Bank is not liable to protect any interest of such third parties. However, in the statement filed on behalf of respondents 1 and 2, it is conceded that the Bank has no intention to sell the property by way of private treaty. The above statement is taken note of and recorded. W.P.(C).29412/09-V 3 3. Therefore it is hereby observed that the petitioners are at liberty to take part in auction sale to be conducted by the Bank with respect to the property in question which will be published through proper proclamation. The writ petition is disposed of with the above observations. C.K.ABDUL REHIM, JUDGE. okb