MALA RAM Vs. CANARA BANK, SIROHI

JUDGEMENT

(1.) The present writ petition has been preferred against the auction proceedings dtd. 5/5/2023 conducted by the respondent Bank qua the petitioner's property in terms of the provisions of SARFAESI Act, 2002. It has also been prayed that the excess amount recovered in the auction proceedings be ordered to be refunded back to the petitioner.

(2.) The facts of the case are that the petitioner was a guarantor qua the loan agreement for Credit facilities availed by respondent No.2-firm vide letter dtd. 25/7/2016 and renewed on 1/10/2021. The account of respondent No.2 subsequently was classified as NPA and ultimately when the outstanding remained unpaid, the respondent-Bank proceeded under the provisions of SARFAESI Act. Ultimately, the property of the petitioner guarantor was put to auction qua the outstanding amount of Rs.19,53,608.16. Admittedly, the property was sold out for an amount of Rs.23.00 lacs.

(3.) Learned counsel for the petitioner submits that admittedly the outstanding amount on the date of auction was Rs.19,53,608.16 and the property has been sold out for Rs.23.00 lacs meaning thereby, the extra amount of Rs.3.23 lacs ought to have been refunded/deposited in the account of the petitioner.