PARVATI DEVI Vs. BANK OF BARODA

JUDGEMENT

(1.) Petitioner stood as a guarantor to a loan taken by respondent no.2 i.e. M/s Himalayan Traders. Since the loan amount was not repaid by the respondent no.2, the account was declared as "Non Performing Assets" (in short "NPA"). Thereafter the bank proceeded under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (from hereinafter referred to as the "Act") for recovery of its loan amount.

(2.) The property which was mortgaged by the petitioner as a guarantor has already been sold in auction and it is too late in a day when the petitioner has approached this Court by means of the present writ petition. These negotiations, if any, can be made only before the auction has taken place. Sub-section (8) of Section 13 of the Act states this legal position, which is as under:-

(3.) Now at this belated stage, no relief can be granted by this Court though the petitioner can still make a representation before the Bank authorities, which shall consider the representation of the petitioner in accordance with law. However, it is made clear that the Bank shall also consider the case of the auction purchaser while doing so.