THOMAS VARGHESE Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioner availed a loan for maintenance of his house from the 2nd respondent-Kottayam District Agricultural Development Bank by mortgaging his property. The loan was disbursed to him on 28.04.2003. The Bank is covered under the Kerala State Co-operative (Agricultural and Rural Development Banks) Act, 1984 (for short, 'the Act') . The Bank, therefore, can recover the loan amount without intervention of the court. The total loan amount availed by the petitioner was Rs.4 lakhs.

(2.) The petitioner has to repay the loan amount in different intervals of three months in every year. Therefore, there were four instalments to be paid in every year. The first of the instalments was due on 01.10.2003. The petitioner defaulted the first instalment. The Bank, as per its decision dated 29.11.2003, took steps to recover the loan amount by invoking the provisions of the Act. On 24.07.2004, an application was submitted by the Secretary of the Bank to the Sale Officer to recover the loan amount by selling the mortgaged property. It seems that before the said request to the Sale Officer, the petitioner was directed to remit the instalments due. By the time the request was made before the Sale Officer, four instalments were due from the petitioner.

(3.) In terms of Section 19 of the Act, the Sale Officer is having power to sell the property charged without intervention of the court after following certain procedures referred therein. One of the procedures is that the registered notice requiring payment of sums due to the Bank should be served upon the person, creating or executing the mortgage or hypothecation. Accordingly, the Sale Officer, on 01.09.2004, directed the petitioner to remit the dues. Notice was returned unclaimed. Thereafter the Sale Officer decided to sell the property in public auction on 08.12.2004 at 11 a.m. The venue of sale was the premises of the Bank. The proclamation of sale was issued on 06.11.2004. Notice was sent to the petitioner. This notice was also returned as unclaimed. The proclamation was also published in the 'Mathrubhumi' daily on 19.11.2004. On the scheduled date of sale (08.12.2004) , the sale had not taken place. It is in a mystery as to what transpired on that day. On going through the counter affidavit and other pleadings, this Court is not in a position to gather what happened on 08.12.2004. The sale was apparently adjourned to 21.12.2004. On that day, it appears that four persons including the Secretary of the Bank were present for auction. The 4th respondent who offered highest bid became the successful bidder. The amount offered by him was Rs.4, 77, 000/-.