N.VIJAYALAKSHMI AMMAL Vs. MANAGER ICICI BANK LTD

JUDGEMENT

(1.) W.A.315 of 2010 is filed against the order passed in W.P.No.29423 of 2006, dated 19.12.2009.

(2.) The brief facts as averred by the appellant in W.P.No.29423 of 2006 are that the appellant claimed that her husband was a partner in M/s.Maruthi Leathers, which is a partnership concern along with the appellant and her son P.M.N.Mohanakrishnaa. The appellant claims that the said M/s.Maruthi Leathers, a partnership concern, availed facility of Open Cash Credit with the then Bank of Madura (now merged with ICICI Bank) upto a limit of Rs.50,00,000/-, for which the appellant stood as a guarantor, by giving her property namely 'Sangeeth Theatre' as security. However, the said partnership firm could not repay the amount and became sick. Thereafter, proceedings before BIFR for reconstruction of firm was also initiated and subsequently, the appellant offered to pay a sum of Rs.15,30,199/- as One Time Settlement to the Bank. The Bank did not accept the One Time Settlement and filed an application in O.A.No.740 of 1999 before the Debt Recovery Tribunal No.1 for recovery of a sum of Rs.68,03,988.48 paise.

(3.) The said O.A was decreed ex-parte on 30.09.2003, in which, the appellant filed I.A.No.286 of 2003 before the Tribunal for setting aside the ex-parte decree, dated 30.09.2003. Pending I.A.No.286 of 2003, the Recovery Officer issued recovery certificate in D.R.C.No.283 of 2003, dated 08.12.2003 which was challenged by the appellant in M.A.No.312 of 2003. The appellant claims that despite the pendency of I.A.No.286 of 2003 and M.A.No.312 of 2003, the Recovery Officer announced the sale of scheduled property and auction was to be held on 19.05.2004, which was stayed by an order dated 14.05.2004 in M.A.No.143 of 2004. However, subsequently, at the instance of the Bank, an order was passed on 21.09.2004 to sell the mortgaged property, which was auctioned on 22.11.2004. Since there was no bidder, the same was postponed to 22.12.2004, on which date, the second respondent was declared as the successful bidder for a sum of Rs.52,10,000/-. On the same day, Rs.13,02,500/- was paid to the Bank towards part payment of the sale consideration.