MOHAN KUMAR Vs. PUNJAB NATIONAL BANK & OTHERS

JUDGEMENT

(1.) Challenge in the present writ petition is to the orders dated 21.08.2008 (Annexure P-9) and 24.10.2008 (Annexure P-10) settling the terms of proclamation of sale as well as subsequent orders in respect of the sale of the property owned by one of the partners of the borrower firm.

(2.) The brief facts, which led to passing of the aforesaid orders, are that the Punjab National Bank-respondent No.1 has initiated proceedings of recovery of dues against the borrower i.e Mangla Steels Corporation, a partnership firm. The said firm has mortgaged the property of Smt. Murti Devi, one of the partners in order to secure the loans advanced by the Bank. Since the borrower defaulted in making the payments, the property of Smt. Murti Devi was put to auction on 15.10.1999. Mr. Iqbal Singh Sabbharwal - respondent No.5, was the highest bidder and the sale in his favour stands confirmed on 08.12.1999.

(3.) Even though the property was sold by public auction, the borrower continued to be in occupation of the same and resisted the delivery of possession, which led to auction purchaser to move the application before the Recovery Officer for handing over the possession.