JAGDISH PRASAD SHARMA Vs. DISTRICT MAGISTRATE

JUDGEMENT

(1.) THE petitioner has, in these proceedings under Article 226 of the Constitution, sought to question the legality of an order passed by the District Magistrate, Lucknow on 9 June 2014 under the provisions of Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(2.) THE premises in question comprise of a residential property bearing No. C -2354 situated at Indira Nagar, Lucknow. The property was originally allotted by the U.P. Avas Evam Vikas Parishad, Lucknow to the fifth respondent on 12 May 1980 against the payment of sale consideration. The petitioner claims that the accommodation was let out to him in January 1988 on a monthly rent of Rs. 400/ -. The petitioner has stated that the allotment of the premises to the fifth respondent was cancelled by the U.P. Avas Evam Vikas Parishad in 1991, but was restored on payment of the outstanding dues and eventually, a registered sale deed was executed on 2 November 1994 in favour of the fifth respondent. The petitioner has set up a case that the fifth respondent entered into an agreement with him for the sale of the premises and in performance of the agreement, an amount of Rs. 50,000/ - was paid on 8 February 1995, a further sum of Rs. 50,000/ - on 12 February 1995, Rs. 30,000/ - on 25 July 1995, Rs. 30,000/ - on 1 February 1999, Rs. 40,000/ - on 8 February 1999 and Rs. 30,000/ - on 15 February 1999. Some of the payments were made by cheques or, as the case may be, by Demand Drafts, while other payments were made in cash. At this stage, it may be noted that the petitioner has annexed various receipts executed in his favour from Annexure Nos. 2 to 7 to the writ proceedings.

(3.) THE fifth respondent sold the residential property through her attorney, respondent no. 6, to respondent nos. 7 and 8 on 20 February 2004. The case of the fourth respondent -State Bank of India is that respondent nos. 7 and 8 had obtained finance from the Bank against the creation of mortgage of the residential property. The deed of mortgage is stated to be of 19 February 2004. The Bank filed Original Application No. 141 of 2007 before the Debts Recovery Tribunal against respondent nos. 7, 8 and 9 on 31 August 2007. The Bank also instituted proceedings under the SARFAESI Act. Measures were adopted under Section 13(4) of the Act. The Bank moved the District Magistrate for an order of possession under Section 14 of the Act. The petitioner filed objections before the District Magistrate setting out his case that he had obtained the residential house on rent from the original landlady and that he had entered into an agreement to sell. There is a reference in the objections filed by the petitioner to the Suit instituted by the petitioner for specific performance and injunction and to the Suit for eviction filed by the fifth respondent.