RAJENDRA BABU Vs. BANK OF BARODA

JUDGEMENT

(1.) Petitioner is facing proceedings under the SARFAESI Act. The only property belonging to the petitioner was kept as a security interest. After proceedings were initiated for enforcement of security interest, the secured asset was brought for sale and was bid by petitioner's son. However, after paying 25% of the auction purchase money, the said auction purchaser committed default in paying the balance of auction money and hence proceedings for forfeiture is initiated. In the meantime, petitioner has filed this writ petition seeking to remit the entire liability due to the respondents in instalments.

(2.) Smt. R. Rema, the learned counsel for the respondents upon instructions, submitted that, petitioner and his son are playing hide and seek and that, though the bank is in the process of forfeiting 25% of the auction purchase money deposited by petitioner's son, the respondents are still willing to grant an instalment facility to the petitioner to repay the entire balance liability. It was submitted that, during the pendency of the proceedings in this writ petition, an amount of Rs.5.00 lakhs, as directed by this Court has been deposited by the petitioner and that, out of the total liability of Rs.70.00 lakhs due from the petitioner, the said amount can be deducted and the balance be paid in reasonable instalments.

(3.) Sri. Manoj Ramaswamy, the learned counsel for the petitioner submitted that, apart from Rs.5,00,000.00, petitioner had paid a further Rs.50,000.00 and is entitled to have deduction of the said amount also. It was also argued that petitioner should be given the benefit of the forfeited amount as well. The learned counsel for the petitioner also submitted that, no intimation about the proceedings for forfeiture has been received by the petitioner and hence, he could not even plead adjustment of the same though he is entitled to get credit of the amount forfeited on account of the auction of his property.