L.RAJAN Vs. AUTHORIZED OFFICER/CHIEF MANAGER

JUDGEMENT

(1.) THE petitioner says that 5.25 cents of land and building owned by him was conveyed to the third respondent with a specific understanding that when the loan availed of from her is repaid, the property will be reconveyed to him.

(2.) IT is stated that contrary to this understanding and without his knowledge in 2006, the third respondent mortgaged the property to the Bank and availed of a loan of Rs.15 lakhs. The Bank submits that in 2006 itself the account became irregular and in 2007 the account was classified as NPA. SARFAESI proceedings were initiated in November, 2007 and an order was also obtained under Section 14 of the Act. Accordingly, the Advocate Commissioner took over physical possession of the property and entrusted the same to the Bank in December, 2008. Since then the Bank has been making efforts to sell the property to recoup its liability which is now more than Rs.22 lakhs.

(3.) HOWEVER , counsel for the Bank points out that even if the petitioner discharges the liability that is due from the third respondent, since the property has been mortgaged by the third respondent, it may not be possible for the Bank to release the documents to the petitioner or to handover the property to him. When this submission was made, on behalf of the petitioner, it was submitted that even if it is so, he is willing to make payment in order to save the property from being sold to a stranger.