SANKAR MOHARANA Vs. CHIEF MANAGER, UCO BANK

JUDGEMENT

(1.) This matter is taken up through hybrid arrangement (virtual/physical mode).

(2.) The petitioner is stated to have availed a Cash Credit loan facility from UCO Bank, Cuttack Main Branch, for a sum of Rs.1.00 Lakh and a Term Loan of Rs.4.00 Lakhs in the year 2010-2011. Due to non-servicing of the C.C. loan account and non-payment of installments in the Term Loan account, both the accounts were declared as NPA leading to the issuance of a Demand Notice dtd. 10/10/2012 under Sec. 13(2) of the SARFAESI Act, 2002 recalling a total outstanding amount of Rs.5,17,665.00along with interest and incidental charges due as on 31/8/2012. The recovery process led up to issuance of the auction notice dtd. 12/1/2013 fixing the auction sale of the secured assets/mortgaged property on 2/3/2013. It is this notice, which has been assailed before this Court without laying down any legal basis for sustaining the challenge.

(3.) This Court vide interim orders dtd. 1/3/2013 and 19/7/2013 had restrained the Opposite Parties to take any coercive action subject to petitioner depositing a sum of Rs.50,000.00 plus another sum of Rs.50,000.00 for restoration of possession, a total of Rs.1.00 Lakh. It is not in dispute that upon deposit of the aforesaid amounts, the auction fixed for 2/3/2013 was not conducted and also the physical possession of the mortgaged house was restored to the petitioner upon compliance of the orders passed by this Court.