RAVINDER SINGH PAYAL Vs. GIC HOUSING FINANCE LTD.

JUDGEMENT

(1.) IN these proceedings the jurisdiction of this Court under Articles 226 -227 of the Constitution of India is invoked to assail the order dated 17.10.2014 of Debt Recovery Appellate Tribunal Delhi (hereinafter referred to as "the DRAT) in appeal No. 25/2013 arising out of Securitization Application (SA) No. 29/2007 which had been dismissed by the Debt Recovery Tribunal -II Delhi (hereinafter referred to as "the DRT") by order dated 16.07.2012.

(2.) THE background facts, briefly stated, are that the petitioner, intending to purchase a lower income group (LIG) residential flat (bearing No. C -2 (LIG), second floor, plot No. 436, Niti Khand -1, Indirapuram, Ghaziabad "the property") from the second respondent ("the builder") had approached the first respondent (the creditor) for financial support. An application was made on 31.12.2001 for housing loan of Rs. 5,25,000/ -. The sale consideration of the property purchased from the second respondent is shown in the sale documents to be Rs. 2,61,000/ -. A tripartite agreement was executed on 29.05.2002 by the petitioner and the respondents whereby loan of Rs. 5,25,000/ - was advanced to be repaid by the petitioner over 15 years through 180 equated monthly installments (EMIs) of Rs. 6,133/ -. As per the agreement, the rate of interest was fixed at 11.5% per annum. The first respondent initially made over to the second respondent an amount of Rs. 4,75,000/ - followed by release of further Rs. 50,000/ - on 28.06.2002. In terms of the contract executed at the stage of the loan, the property was mortgaged with the first respondent as security. It, however, needs to be noted that the petitioner had also entered into two agreements with the second respondent (builder), one concerning sale of the flat, for consideration of Rs. 2,61,000/ - and another for finishing work against consideration of Rs. 3,24,000/ -.

(3.) THE respondent bank invoked the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the SARFAESI Act") and issued a notice on 21.11.2005 (dispatched on 18.01.2006) under Section 13(2). The petitioner objected to these measures. The bank issued another notice under Section 13(2) on 29.05.2006, followed by still another notice, now under Section 13(4), on 14.11.2006 taking out symbolic possession of the mortgaged property. The petitioner sent a reply on 29.11.2006. It appears the bank approached the Additional District Magistrate, Ghaziabad (ADM) under Section 14 of the SARFAESI Act, information in which regard was given by the ADM to the petitioner in terms of his order dated 26.06.2007.