NISHANT KUMAR PANDEY Vs. UCO BANK AND OTHERS

JUDGEMENT

(1.) When the case was called out in the first round, learned Counsel for the petitioner of writ petition No. 1364 (M/B) of 2012 as well as Counsel for the opposite parties are present but Counsel for the petitioner of writ petition No. 9558 (M/B) of 2011, namely, Sri A.P. Singh, Advocate, is not present and as such, the case was passed over. When the case called out in the second round, neither Counsel for the petitioner of writ petition No. 9558 (M/B) of 2011 is present nor there is any request for passing over or adjournment of the case.

(2.) The house of Shiv Ram Pandey (petitioner of writ petition No. 9558 (M/B) of 2011), who is a guarantor in respect of a loan to the tune of Rs.6 Crores granted to a Company, namely, M/s Sewa Developers (Pvt.) Ltd. Company by the UCO Bank, Hazratganj, Lucknow, had put to auction by means of sale notice dated 20.8.2011 after initiating the proceedings under Section 13 (12) of the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 [hereinafter referred to as the "SARFAESI Act"] against the borrowers on the grounds that they have not deposited the loan amount as per the terms and conditions of the agreement entered between the borrowers and the Bank. Feeling aggrieved, the petitioner has approached this Court by filing writ petition No. 9558 (M/B) of 2011 inter alia on the grounds that notice issued under Section 13 (2) of the Act and the order passed under Section 13 (4) of the Act became invalid after compromise/settlement/negotiation and the order impugned in the petition, has been passed without issuance of notice under Section 13 (2) of the Act and the order under Section 13 (4) of the Act, therefore, the order impugned in the petition is liable to be struck down on this score alone.

(3.) While entertaining writ petition No. 9558 (M/B) of 2011, this Court, vide order dated 23.9.2011, as an interim measure, stayed the auction of the petitioner's house till the next date of hearing, subject to depositing of auction amount of Rs.1 Crore 30 Lacs within a period of one week from the date of the order and the rest of the loan amount within further period of two months.