SANJEEV BANSAL Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) The Oriental Bank of Commerce/respondent No. 1 advanced a loan facility to M/s Mohit Distributors. Flat No. 115, Sector 55, Palsora, Chandigarh allotted to Smt. Anita Garg by the Chandigarh Housing Board/respondent No. 2 is stated to have been given as security by way of equitable mortgage to respondent No. 1/bank. M/s Mohit Distributors is alleged not to have paid the outstanding dues resulting in legal proceedings for recovery of a sum of Rs. 17,61,940/- alongwith pendelite and future interest @ 15% per annum being instituted before the Debt Recovery Tribunal, Chandigarh. These proceedings resulted into a decree on 20.10.2003 in O.A. No. 623 of 2003 and the recovery certificate was issued on 20.10.2003.

(2.) It appears that this decree was ex-parte and an endeavour is made by M/s Mohit Distributors for seeking setting aside of the exparte decree, but there was non-compliance of the condition for doing so. In order to realize its dues, the flat was put up for auction by inviting sealed tenders on 'as is where is basis'. The reserve price fixed at Rs. 21,14,000/- with earnest money being 5% of the reserve price was required to be submitted by 25.07.2006 and the sealed tenders were to be opened on 26.07.2006 on which date auction would be conducted amongst the bidders. Other than the terms and conditions as to how the auction would proceed there were two material terms which read as under:-

(3.) The petitioner was one of the participants and was the successful bidder at a price of Rs. 25.85 lacs. The entire amount was paid by the petitioner to the Debts Recovery Tribunal and the sale is stated to have been confirmed on 22.01.2007.