H.R. VEERABHARAIAH Vs. STATE BANK OF HYDERABAD

JUDGEMENT

(1.) Petitioners have called in question the recovery certificate dated 13-3-2012 bearing DRC No. 6757 of 2012 in OA No. 413 of 2007 of the Presiding Officer, Debt Recovery Tribunal (for short 'DRT'), Bangalore, Annexure-A, insofar as it relates to paragraph 4 and the schedule of properties. It is the assertion of the petitioners that they purchased the immovable property in question under a deed of sale registered on 28-4-2006 executed by 2nd respondent. The 1st respondent-Bank alleging to have obtained a mortgage of the said immovable property, and as the 2nd respondent failed to repay the dues, instituted OA No. 413 of 2007 before the DRT, Annexure-C, arraigning petitioners as party respondents 2 and 3 while the borrower as 1st respondent.

(2.) That petition was opposed by filing statement of objections of the petitioners, inter alia, denying creation of the mortgage, while asserting title to the immovable property. 1st respondent-borrower having remained absent, did not offer resistance to the petition.

(3.) After a trial, the DRT by order dated 9-12-2009 Annexure-E dismissed OA levying exemplary cost of Rs. 50,000/-, observing that there was no mortgage, but an agreement to create an equitable mortgage in respect of immovable property in question and since no mortgage was created, petitioners having purchased the immovable property under sale deed executed by the borrower, the Bank did not have any right to recover the money from out of the sale of the said immovable property.