ABIDE C.H Vs. NORTH MALABAR GRAMIN BANK,

JUDGEMENT

(1.) THE petitioner is before this Court being aggrieved of the steps taken by the respondent Bank under the SARFAESI Act, seeking to realize the amount stated as due from the borrowers of a loan availed from the Bank, from whom the petitioner had purchased the property, without knowing the security interest created over the said property. The learned Counsel for the petitioner submits that, the third and fourth respondents herein had secured a loan from the second respondent Bank, creating security interest over the property and the petitioner was a bonafide purchaser.

(2.) THE learned Counsel for the Bank, with reference to the contents of the statement, submits that the Writ Petition is not maintainable, as the petitioner is a total stranger as far as the Bank is concerned and the action being pursued by the Bank is only against the 3rd and 4th respondents/borrowers and the property over which security interest was created, which hence is perfectly in tune with the relevant provisions of the law. It is also stated that, by virtue of the relevant provisions of the Act, the rights and liberties of the Bank stands concluded and secured, notwithstanding anything contained in any other provisions of law.

(3.) TAKING note of the submissions made by the learned Counsel for the petitioner and that total outstanding liability will be nearly Rs. 10 lakhs, the petitioner is directed to clear the entire liability, if he wants to save the property in question, by way of 6 equal monthly installments; the first of which shall be effected on or before the 20th of June, 2010 to be followed by the similar installments to be effected on before the 20th of the succeeding months. Subject to this, the recovery proceedings, stated as being pursued against the petitioner, shall be kept in abeyance. It is also made clear that, if any default is committed by the petitioner in satisfying the installments as above, the Bank will be free to proceed with further steps for realization the entire amount in a lump sum, from the stage where it stands now. The rights and liberties between the petitioner and respondents 3 and 4 are left open.