CANARA TILE WORK Vs. CANARA BANK

JUDGEMENT

(1.) Petitioner has sought for quashing the auction notice dated 12.6.2010 issued by the Respondent and published in The Hindu, (Mangalore Edition), dated 13.6.2010 and all further proceedings held pursuant thereto.

(2.) The copy of the auction sale notice is produced at Annexure-'C' to the writ petition. The property in question is 97 cents of land in T.S. No. 503, R.S. No. 193 of Mangalore Thota Village in Mangalore City Corporation, consisting of building bearing Nos. 974, 975, 976-08 of 92. The boundaries are also mentioned in the very notice. The auction was scheduled to be held on 15.7.2010 at 3.30 p.m. The reserve price was shown as 55 lakhs. However, as per the terms and conditions, the intending bidders would have to deposit earnest money (EMD) of 55,000/- being 10% of the reserve price.

(3.) The sale notice is questioned on the ground that the reserve price fixed in the sale notice was abnormally low and is less than the Government's valuation which has resulted in serious prejudice to the Petitioners; that the Bank is not justified in showing 1% of the reserve price i.e. 55,000/- only; that EMD though was required to be at 10%, the same is shown as 55,000/- instead of 5,55,000/-; that one of the partners died subsequent to the notice dated 8.7.2010 and therefore the auction ought to have been postponed in order to give an opportunity to the Petitioner to clear the debts; and that the Petitioner has found out another purchaser who has filed an affidavit before this Court agreeing to purchase the property for 85 lakhs.