VIRENDER KUMAR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) One Ram Lok had raised an industrial loan of Rs. 4,500 from the State of Himachal Pradesh in the year 1966 On November 1, 1968. he executed a mortgage deed in respect of his property to secure another loan which he had taken from the State Bank of India. A supplementary mortgage deed was also executed by him on June 30, 1970. The total amount of loan was Rs. 50,000 which was secured through these mortgage deeds alongwith interest due thereon.

(2.) Ram Lok failed to repay the loan taken from the State Bank of India. On April 28, 1974, a suit was filed by the bank for recovery of the amount due to it with a prayer that the property mortgaged as security for loan be put to sale. A preliminary decree was passed in favour of the bank on June 15, 1976. A final decree followed on April 12, 1977.

(3.) Ram Lok had failed to repay the loan which he had raised from the State of HimQchal Pradesh. That amount was recovered as a land revenue from him. His property was put to sale. Virender Kumar offered the highest bid and purchased the property at an auction sale in the course of those proceedings. The sale was confirmed in his favour by the Divisional Commissioner and a sale certificate was issued in his favour on July 8 1977. The sale certificate showed that the land measuring 9 bighas 4 biswas forming part of khasra No 132/1 was sold in his favour. The auction sale, which eventually resulted in the issuance of the sale certificate in favour of Virender Kumar, was held on August .18, 1975.