Civil Writ Petition No.1810 of 2009 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.1810 of 2009 (O&M) Date of decision:01.09.2009. Savita Mittal and another ...Petitioners Versus Vijaya Bank and others ...Respondents CORAM: HON'BLE MR. JUSTICE JASBIR SINGH Present: Mr. R.S.Bhatia, Advocate, for the petitioners. Mr. Vikas Singh, Advocate, for respondent No1. ***** JASBIR SINGH, J. (ORAL). Reply to the C.M. No.9818 of 2009, on behalf of respondent No.1, filed in Court, is taken on record. Father-in-law of the petitioner No.1 had raised a loan from respondent No.1. He also mortgaged his property, i.e. house No.301/7, Kothi Gate, Kaithal, Haryana, to secure repayment of the loan amount. It is an admitted fact that the loanee died on 28.10.2005. Husband of the petitioner No.1 also died thereafter. On account of the above said developments, there was a default in repayment of the loan amount. Respondent No.1 initiated the proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short `the Act'), to recover the amount in question. In that process, after issuance of notice under Section 13(2) and, thereafter, under Section 13(4) of the Act, house mentioned above was auctioned on 23.12.2008 for an amount of Rs.7,17,000/-. At that stage, petitioners filed this writ petition, with a request that respondent – bank be directed not to proceed under the provisions of the Act, against the property Civil Writ Petition No.1810 of 2009 (O&M) -2- mortgaged with it. Further prayer was to quash the proceedings undertaken by the bank under the provisions of the Act, to sell the house in question. When notice of motion was issued on 04.02.2009, following contention of counsel for the petitioners was noticed by this Court: - “Learned counsel for the petitioners submit that with a view to save the solitary residential house, the ground floor of which was occupied by petitioner No.1 along with her minor children, they are ready and willing to pay the entire loan amount.” Parties were ordered to maintain status quo regarding possession of the house in question. Petitioner No.2 is father of the petitioner No.1. To secure interest of his widow daughter, petitioner No.2 has stated that he is ready to make payment of the entire loan amount, due to respondent No.1. His counsel states that a Fixed Deposit Receipt (FDR), which is ownership of petitioner No.2, for an amount of Rs.8 lac, is lying with respondent No.1's branch at Shimla. He states that respondent No.1 may get that amount transferred, to its branch, and adjust towards loan amount raised by deceased father-in-law of petitioner No.1. After adjustment of the amount, as stated above, if any further amount is due to the bank, the same shall also be paid on getting intimation in that regard. Shri Vikas Kumar states that he will intimate counsel for the petitioners, if any amount remains to be paid. In view of the fact that property was auctioned for an amount of Rs.7,17,000/- and petitioner No.2 is paying more than that amount, he shall be deemed to be the highest bidder for the property in Civil Writ Petition No.1810 of 2009 (O&M) -3- question. In view of this, Court feels that there shall be no objection with respondent No.1 – bank to transfer that property, by issuing a sale certificate, in favour of petitioner No.2. Counsel for respondent No.1 has failed to show any opposition to the prayer made by counsel for the petitioners. In view of above, this writ petition is disposed of with an observation that, subject to realization of the amount by the bank, in the manner as stated above, the bank shall issue a sale certificate in favour of petitioner No.2. After getting the amount transferred from its branch in Shimla, to its branch at Kaithal, respondent No.1 shall hand over possession of the property in question to petitioner No.2 forthwith. Shri Vikas Kumar states that needful will be done within a period of 15 days from today. September 01, 2009 (JASBIR SINGH) vinod* JUDGE