BHUPINDER SINGH Vs. STATE BANK OF PATIALA

JUDGEMENT

(1.) THE petitioner, who is a poor mason and had taken a small house loan of Rs. 4,80,000/- from the respondent Bank, has filed this writ petition challenging the action of the respondent-bank whereby the house for which the aforesaid loan was taken, has been sold in a fake auction in illegal, arbitrary and fraudulent manner by invoking the provisions of the Securitisation and reconstruction of Financial Assets and Enforcement of security Interest Act, 2002 (hereinafter referred to as 'the Act' ). The instant case is an example of unreasonableness and high handedness where the bank authorities have misused the provisions of the Act by selling the house of a poor borrower at a throw away price in collusion among themselves.

(2.) IN the present case, in April, 2003, the petitioner along with his wife had taken a loan of Rs. 4,80,000/- for the purchase of a double storey constructed house situated at Dashmesh Nagar, Patiala. The said house was constructed in an area of 133. 3 sq. yards with a covered area of 1251 sq. ft. They had purchased that house for a consideration of Rs. 6,00,000/- vide registered sale deed dated 12-6-2003 from one Smt. Saroj bala. They had paid an amount of Rs. 1,20,000/- from their personal savings and the remaining amount of Rs. 4,80,000/- was borrowed by them from the respondent bank. The borrowed amount was directly paid by the bank to the vendor. As per the agreement, the said loan was to be re-paid in equated monthly installments of Rs. 5000/- each within a period of 180 months.

(3.) AT the time of granting the loan, the respondent-bank got valued the house in question from its approved valuer, who vide his valuation report dated 9-6-2003 assessed the value of the said house at Rs. 6,14,294/ -. Thereafter the aforesaid amount of loan was sanctioned.