S.PREMA Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) This Writ Petition was filed challenging the auction notification issued by the respondent Bank and for a consequential direction for the respondent Bank to hand over the jewels that were pledged by the petitioner for the loan availed by the petitioner which the petitioner was willing to repay back to the respondent Bank.

(2.) The issue that is involved in the present Writ Petition has been captured in the earlier order that was passed by this Court on 8/11/2021 and is extracted hereunder:

(3.) Pursuant to the above order, the petitioner has filed an additional affidavit and she has stated that an agricultural loan was availed by the petitioner from the respondent Bank, Kulasekaram Branch, for which, the petitioner had created a security by deposit of title deed on 15/4/2015 and thereby, the property situated in R.S.No.44/1A2B measuring 45 cents was mortgaged. Subsequently, the loan was declared as "NPA" and a notice dtd. 3/2/2021 was issued under Sec. 13 (2) of the SARFAESI Act, 2002. The petitioner has stated in the additional affidavit that the total value of the immovable property that was given as security, is worth more than Rs.1,00,00,000.00 (Rupees One Crore only) and whereas, the outstanding loan was only a sum of Rs.21,13,101.00 (Rupees Twenty One Lakhs Thirteen Thousand One Hundred and One only). Therefore, the petitioner has taken a stand that the available security will be more than sufficient for the Bank to recover the unpaid loan availed by the petitioner. Accordingly, it is stated that the respondent Bank cannot further exercise general lien under Sec. 171 of the Indian Contract Act, 1872, on the jewellery that was pledged by the petitioner for the jewellery loan that was availed and which was subsequently, repaid back.