SHAJU M.P. Vs. CANARA BANK

JUDGEMENT

(1.) THE petitioner is aggrieved with the recovery proceedings initiated against the property and the sale of the property notified as per Ext.P4. The petitioner would contend that the property is valued at more than Rs.2,26,000,00/ - and hence, the loan availed of from the Bank can be satisfied even by selling a portion of the property. The property has an extent of 57 cents and hence, the petitioner prays that the Bank may be directed to sell a portion of the property first, and if the due amounts are satisfied then, the distress on the rest of the property would be released.

(2.) THE learned counsel appearing for the respondent Bank however, stoutly opposes any such move especially since Ext.P3 notice has been issued as far back as on 12.06.2014 and the sale is posted to 04.08.2014. The above writ petition has been filed only on 31.07.2014.

(3.) THE petitioner then moved the Debt Recovery Tribunal (DRT) with a Securitization Application against the sale of the property on 30.04.2012. The DRT had issued an interim order of stay of proceedings on condition of payment of about Rs.8 Lakhs. The petitioner admittedly did not comply with the same and deposited only Rs.1,03,000/ -. Subsequently, the petitioner challenged the order of the DRT in the Securitisation Application before this Court in OP (DRT).1470/2012 and this Court extended indulgence to the petitioner; by adjourning the sale again on condition; which condition was also not satisfied by the petitioner. Thereafter, the Bank had granted the petitioner an opportunity to settle the entire loan amounts as per a One Time Settlement proposal and communication dated 17.3.2014, was issued thereon. As per the OTS, the petitioner was to settle the dues of 30.16 Lakhs against a total liability of more than Rs.50 Lakhs. The petitioner was obliged to make payment of Rs.15 Lakhs immediately and the balance amounts in three months. Neither did the petitioner make initial payment of Rs.15 Lakhs nor the instalments in the next three months.