V. LAKSHMIDEVI Vs. IDBI BANK LIMITED

JUDGEMENT

(1.) Petitioners are the guarantors to the loan availed by respondent 2 from respondent 1. Petitioners created security interest on their properties in favour of respondent 1-Dank. Respondent 2-loanee, having committed default, the account was declared as 'Non-performing Asset'. Measures having been taken under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'the Act') and the properties shown in the schedule of the writ petitions, mortgaged in favour of the bank, having been notified for auction sale in public, vide Annexure-B, assailing the communication as at Annexure-A and the public notice issued for auction sale of the properties published, in 'the Hindu' daily newspaper dated 30-11-2013, vide Annexure-B, these writ petitions were filed on 12-12-2013. By an order dated 20-12-2013, it was made clear that the respondent 1 may proceed with the auction scheduled on 31-12-2013 and that the same shall not be finalised or the sale shall not be confirmed in favour of the highest bidder. Learned Advocate for the respondent 1-bank submitted that the auction sale notified vide Annexure-B did not materialise. He submitted that the properties notified have not been sold in terms of Annexure-B. He further submitted that in view of the purpose of said notification having not materialised, the prayers in these writ petitions, insofar as Annexures-A and B are concerned, do not survive for consideration.

(2.) Learned Advocate appearing for the petitioners submitted that, since the intended sale in terms of Annexures-A and B has not taken place, the petitioners do not press the reliefs sought in respect of Annexures -A and B, in prayer columns (a) and (b). He submitted that, since respondent 2 owns properties, respondent 1 may be directed to recover its dues by proceeding against the assets of respondent 2 i.e., before proceeding against the collateral security offered by the petitioners.

(3.) Sub-section (11) of Section 13 of the Act reads thus: