D. KARTHIKEYAN Vs. CHAIRMAN, INDIAN BANK

JUDGEMENT

(1.) The relief sought in this writ petition is to issue a writ of mandamus, directing the second respondent Bank to refund a sum of Rs.55,50,000.00 paid towards tender-cum-auction sale dtd. 17/9/2012, to the petitioner along with interest at 24% from the date of deposit of Earnest Money Deposit till refund.

(2.) According to the petitioner, he is the auction purchaser in respect of the land admeasuring 3250 sq.ft together with the building with a built up area of 1075 sq.ft. in ground floor at Door No.9, Jesudasan Street, Radha Nagar, Chrompet, Chennai 600 044, comprised in S.No.432/9 of Zameen Pallavaram Village, pursuant to the public auction conducted by the second respondent Bank on 17/8/2012. The bid amount was Rs.55,50,000.00. Originally, he deposited a sum of Rs.4,22,091.48 towards EMD on 16/8/2012 and an additional of Rs.9,68,000.00 on 17/8/2012. After emerging him as a successful bidder, he deposited the remaining bid amount of Rs.41,62,000.00 with the second respondent Bank on 24/8/2012. The respondent Bank issued the sale certificate in favour of the petitioner for the said property on 17/9/2012, however, possession was not handed over to him, till date, despite several requests made by the petitioner.

(3.) It is further stated by the petitioner that while so, on 2/5/2014, the second respondent sent a letter to the District Collector, Kanchipuram, requesting to initiate action under Sec. 14 of the SARFAESI Act, 2002 in respect of the subject property. The District Collector forwarded the said letter to the Tahsildar, Alandur and directed him to conduct an inspection, ascertain the details regarding the auctioned property and submit a report. At the time of inspection, it was found that the auctioned property belonged to the Government and was classified as a water body; and that, the original owners viz., Shanmugam and his wife Sumathi, who had mortgaged the property with the second respondent Bank, had illegally encroached the said Government land. The Tahsildar, Alandur, filed a report dtd. 6/11/2014 to the District Collector, to that effect. Upon coming to know about the same, the petitioner made a request to the respondent bank to refund the amount deposited by him and the same was not considered, which compelled him to file a complaint before the Judicial Magistrate Court, Tambaram against the Bank as well as the original owners of the subject property. The complaint was taken on file by the criminal court, but only against the original owners of the property and not against the bank. In such circumstances, finding no other alternative, the petitioner has preferred this writ petition for the aforesaid relief.