RATAN KUMAR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THESE three writ petitions have been heard together and are being decided by this common judgment. In Writ Petition No.64630 of 2012 (Ratan Kumar and others vs. State Bank of India and others) pleadings are complete which is being treated as leading writ petition.

(2.) BRIEF facts giving rise to these three writ petitions are; M/s J.P. Telecom obtained a cash credit limit and term loan from State Bank of India. Smt. Jaggi Devi was one of the guarantors of the loan. House No.149, Bai Ka Bagh, Kydganj, Allahabad was mortgaged to the Bank by deposit of title deed. The guarantee agreement was executed on 25th June, 2007. The borrower failed to repay the loan. The State Bank of India initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 2002 Act) by issuing notice under Section 13(2) dated 25th August, 2008 for recovery of its dues. A notice was also sent to Smt. Jaggi Devi wife of Raja Ram and Ajay Kumar son of Raja Ram, the guarantors. The details of House No.149 which was mortgaged, was mentioned in Part-II of the notice. The borrower failed to repay the amount within 60 days, hence Bank invoked its power under Section 13(4) of the 2002 Act. The possession notice dated 14th September, 2009 was issued. Before issuing the possession notice, the Bank has filed an application under Section 14 of the 2002 Act before the District Magistrate, Allahabad for taking possession of the house. The District Magistrate passed an order on 19th June, 2009 under Section 14 of the 2002 Act for taking possession of mortgaged assets including House No.149 area 25.09 square meters and 116.92 square meters. The Bank took symbolic possession of House No.149 on 14th September, 2009. A notice was also published in the newspapers on 15th September, 2009 informing the public in general that possession of the mortgaged assets have been taken and public in general has been cautioned that no transaction (sale/purchase) be made of the mortgaged assets. M/s J.P. Telecom was mentioned at Item No.10 of the notice. The Bank, after taking symbolic possession, proceeded to auction the House No.149. One Neeraj Kumar (respondent No.5) in Writ Petition No.64630 of 2012 purchased the house in auction on 27th May, 2011for an amount of Rs.35,51,000/-. The sale was confirmed on 11th June, 2001 on which date the sale certificate was issued to the auction purchaser. The Bank which had taken symbolic possession of the house earlier on 14th September, 2009 had written a letter dated 18th July, 2011 to the Additional City Magistrate-III, Allahabad forwarding the copy of the order of the District Magistrate passed under Section 14 of the 2002 Act dated 19th June, 2009 stating that possession of the mortgaged assets was taken on "symbolic possession basis' and no physical possession was taken. The Bank by the said letter requested for taking of possession. The Additional City Magistrate on 4th August, 2011 wrote to the Station House Officer, Police Station Kydganj to get the possession of the house transferred in favour of the Bank and police help be provided. Notice dated 28th July, 2012 was issued in the name of Smt. Jaggi Devi that possession of the house be transferred to the Bank by 7th August, 2012 failing which police force shall be used. The Bank has again written to the Additional City Magistrate on 4th December, 2012 for handing over the possession to the Bank.

(3.) IN Writ Petition No.64630 of 2012 this Court passed an interim order on 21st December, 2012 to the following effect:-