PNB HOUSING FINANCE LIMITED Vs. USHA RANI

JUDGEMENT

(1.) BY these proceedings under Article 226 of the Constitution of India, the Petitioner, PNB Housing Finance Ltd (hereafter called "PNB Housing") impugns an order of the Debts Recovery Appellate Tribunal, rendered in an appeal preferred under Section 18 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter referred to as "SARFAESI Act")

(2.) THE brief facts are that PNB Housing issued notice under Section 13(2) of SARFAESI Act to the second and third respondents (the borrowers) claiming Rs. 20,63,870/ - by notice dated 14.1.2010. As borrowers failed to pay the amount, PNB Housing sought and secured an order from the Additional Chief Metropolitan Magistrate (ACMM), Delhi, and took possession of the suit property on 21.5.2011. This action i.e taking possession of the property was challenged in an application preferred by Respondent No. 1 by the Debts Recovery Tribunal (DRT), who sought restoration of possession of the property. Respondent No. 1 claimed that she was owner of the suit property (bearing No.05, area 60 Sq. mtrs, Block No.1, Pocket No.8, Sector 17, Rohini, Delhi). According to her, she purchased the property from Ms. Neetu Paul, W/o Sh. Rajesh Kumar and Ms. Anita Goel, W/o Sh. Raj Kumar Goel. They derived title through a registered Sale Deed, and consequently Respondent No. 1 claimed valid title over the property. PNB Housing had granted a housing loan of Rs. 20,00,000/ - to the second and third respondents on their creating equitable mortgage of this property, on the basis of their claim that that they had valid title - by way of Sale Deed dated 8.3.2007; the title deeds were deposited to create equitable mortgage on 30.5.2007. Respondent No. 1 alleged that the Sale Deed dated 8.3.2007 relied on by PNB Housing was forged and the second and third respondent borrowers did not possess any valid title or possession in respect of the property. PNB Housing contended that the borrowers were advanced amounts on 6.3.2007.

(3.) IN the proceedings under Section 17 of the SARFAESI Act, Respondent No. 1 filed affidavit and marked eight documents, AW1/1 to AW1/8 and documents ABC. On behalf of PNB Housing, Mr. O.M. Malik, Manager, filed affidavit and proved documents RW1/1 to RW1/11. The borrowers were proceeded against ex -parte.