PUNJAB NATIONAL BANK Vs. STATE OF U P

JUDGEMENT

(1.) Heard learned Counsel for the petitioner. Notices were issued to respondent Nos. 3 and 4 by registered post. The office report dated 11.11.2012 states that notices were issued fixing 14.11.2011, but neither undelivered cover nor acknowledgement have been received back. Notice to respondent Nos. 3 and 4 deemed sufficient. When the case was taken up today no one appears for the respondent Nos. 3 and 4.

(2.) By this petition, petitioner has prayed for quashing the order dated 14.6.2011 passed by the District Magistrate, Mau in exercise of its power under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the SARFAESI Act, '2002'). By the said order the District Magistrate, Mau allowed one month's time to the respondent Nos. 3 and 4 to deposit the entire dues against the mortgage house failing which mortgage house shall be given to the Bank. Bank has challenged the said order.

(3.) Brief facts emerging from the writ petition are: the respondent No. 3 took loan of Rs. 2,00,000/- on 29.8.2003 and failed to repay the same. Bank initiated proceedings by issuing notice under Section 13(2) of the Act demanding amount of Rs. 2,03,447/- plus interest. When respondent Nos. 3 and 4 failed to deposit the amount, Bank issued notice for taking possession over the property and subsequently, a sale notice was issued by the Bank and property was ultimately auctioned on 3.9.2009 and auction was confirmed in favour of Rajendra Prasad S/o of Sambhu Narain for amount of Rs. 3,71,000/-. Sale certificate dated 12.10.2009 has been filed as Annexure 5 to the writ petition. It appears that Bank has moved application before the District Magistrate, Mau under Section 14 of the Act for handing over possession of the house in question. The District Magistrate on the said application after considering the affidavits submitted by respondent Nos. 3 and 4 granted them one month's time to deposit the entire amount to the Bank.