R.B. ROY Vs. PUNJAB NATIONAL BANK, RAIPUR

JUDGEMENT

(1.) This writ petition under Article 226 of the Constitution of India has been preferred by the auction purchaser seeking quashment of the letter dated 26/29th June, 2009 (Annexure-P/1) issued by respondent No.2 informing the petitioner that upon his failure to deposit the balance price of the auctioned property amounting to Rs. 2,47,875/- within the stipulated period, as per clause-7 of the agreement dated 20.5.2009, his initial deposit of Rs. 82,625/- stands forfeited. The petitioner has also prayed for direction to the respondents to accept the balance amount from the petitioner towards auction of the house and deliver actual physical possession of the house to the petitioner or in case, the respondents are not in a position to deliver possession of the house, then refund the earnest money of Rs. 82,625/- with interest @ 18%.

(2.) Facts of the case, briefly stated, are that one JP Dubey, (since deceased) and his wife Smt. Meenu Dubey, resident of MIG-1/71, Housing Board Colony, Deorikhurd, Bilaspur, obtained housing loan from the respondent bank. On failure to repay the loan amount, the bank proceeded under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act, 2002') against them and obtained possession of the house No. MIG-1/71, Housing Board Colony, Deorikhurd, Bilaspur and thereafter proceeded to sell the property in accordance with the provisions of the Act, 2002 and the Security Interest (Enforcement) Rules, 2002 (for short 'the Rules, 2002').

(3.) An advertisement for auction was issued on 31.3.2009 published in the newspaper on 1st April, 2009 (Annexure-P/2). The advertisement mentioned the recoverable amount as Rs. 2,70,049/- together with future interest from the date of declaration of NPA and other charges and the reserved price to be Rs. 3 lakhs. The earnest money was fixed at Rs. 30,000/-. The petitioner submitted tender for purchase of the property and his offer of Rs. 3,30,500/- was accepted by the bank for which a communication dated 18.5.2009 was sent to the petitioner. In this communication, the petitioner was further instructed to execute an agreement with the bank and such agreement was executed between the petitioner and the bank on 20.5.2009 (Annexure-P/4) mentioning therein that symbolic possession of the property agreed to be sold will be given only on payment of full price as provided in the agreement and thereafter a certificate of sale shall be executed by the bank and on such execution, ownership of the asset shall pass on to the petitioner, with further stipulation that the property is sold on "As is where is" basis. It is also stipulated that in case of default in payment of balance sale price or breach of any of the terms and conditions of the agreement to sell, deposit made by the purchaser shall stand forfeited.