RAJENDRA VIRANI Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) Heard.

(2.) This writ petition has been filed under Article 226 of the Constitution of India for quashment of the auction proceeding in respect of plot No.344 measuring 1000 Sq.Feet Situated at Venkatesh Nagar Colony, Bijasan Road, Indore (further referred as suit property) dated 14.12.2007 conducted by the respondent No.1/Commercial Tax Department, Indore and to direct them for handing over the possession of that property to the petitioner and a prayer has been made for grant of compensation for the period for which the petitioner has been deprived of from the possession of the property in question.

(3.) In short the case of the petitioner is that the respondent No.2, State Bank of India had sanctioned the house loan to the principal borrower Suraj Bhan Goyal and as a security for loan he mortgaged the suit property under his ownership, however, he failed to repay the loan amount as per the loan agreement. Therefore, respondent No.2 filed an original application No.O.A. No.88/02 before learned Debt Recovery Tribunal, Jabalpur which was allowed and thereafter, in furtherance of the decree granted to the bank auction notice was published on 28.10.2002 in execution of case No. OAEX 9/2003. The petitioner along with respondents No.5 to 7, who are the partners participated in the said auction which was held on 15.07.2004 and were declared as successful bidders. They deposited the entire amount of Rs.8,80,000/- and were granted a certificate of sale of immovable property on 08.04.2005. The original title deed of the property mortgaged with the bank was also handed over to the petitioner, declaring him to be the absolute owner of the property. After getting a certificate of sale, the petitioner produced the same before the office of Deputy Registrar, Indore and got the certificate of sale registered after depositing the stamp duty as per law. Thereafter, the corporation Indore was also informed about the sale on the same date and was requested to mutate the name of the petitioner in the record.