SMT. RATNA DEVI Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) Petitioner was a guarantor to a loan taken by the Achievers Group which is a partnership firm and its partners i.e. Sri Ved Prakash Gwari and Smt. Nitika Gwari. The loan amount was of Rs.9,00,000/- (Rupees Nine Lakhs Only) which could not be repaid. Meanwhile, another loan of Rs.30,00,000/- (Rupees Thirty Lakhs Only) was taken by the partners, which they also failed to repay. Consequently, the mortgaged property was sold in auction by the respondent-bank, in which the amount which has been received by the respondent-bank is over and above the amount payable at the said loan.

(2.) According to the petitioner, the surplus amount which has been received by the respondent-bank is of Rs.45,50,000/- (Rupees Forty Five Lakhs Fifty Thousand Only), which covers the liability of the principal borrower in the second loan as well in which the petitioner was the guarantor. However, this fact has been denied by the learned Senior Counsel for the respondent-bank.

(3.) Undoubtedly, under the definition of a "borrower" under Section 2 (f) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002, guarantor also stands in the same definition, but the fact remains that since the liability of the Bank as per the petitioner has already been fulfilled, there is no occasion now for the respondent-bank to sell the property of the petitioner in auction.