IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 27TH DAY OF JULY 2022 / 5TH SRAVANA, 1944
WP(C) NO. 7537 OF 2022
PETITIONER
AHMEDKUTTY T.T. REPRESENTED BY POWER OF ATTORNEY,
MOIDEENKUTTY T.T.
AGED 57 YEARS
S/O MOHAMMED T.T., R/AT THOOMBATH THAZHAKKATT HOUSE,
PARAPPUR VILLAGE & POST, MALAPPURAM DISTRICT-676503
REPRESENTED BY HIS LAWFUL POWER OF ATTORNEY,
MOIDEENKUTTY T.T. AGED 54 YEARS, S/O MOHAMMED T.T.,
R/AT THOOMBATH THAZHAKKATT HOUSE,
PARAPPUR VILLAGE & POST, MALAPPURAM DISTRICT,
PIN - 676503
BY ADVS.
S.JIJI
P.RAJESH (KOTTAKKAL)
RESPONDENTS:
1 INDIAN OVERSEAS BANK REPRESENTED BY BRANCH MANAGER
KOTTACKAL BRANCH, ASIAN TOWER, MAIN ROAD, KOTTACKAL,
MALAPPURAM DISTRICT, PIN - 676503
2 THE AUTHORISED OFFICER UNDER SARFAESI ACT
KOTTACKAL BRANCH, ASIAN TOWER, MAIN ROAD, KOTTACKAL,
MALAPPURAM DISTRICT, PIN - 676503
3 THE ASSISTANT GENERAL MANAGER
INDIAN OVERSEAS BANK, REGIONAL OFFICE, VETTUKATTIL
BUILDING, M.G. ROAD, ERNAKULAM, PIN - 682016
BY ADVS.
SUNIL SHANKER
VIDYA GANGADHARAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
27.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 7537 OF 2022
2
JUDGMENT
Dated this the 27th day of July, 2022 The petitioner, who is Purchaser of an e-auction property auctioned by the 1st respondent-Bank, has approached this Court seeking to quash Ext.P6 and to direct the respondents to grant three more months time to make the balance sale consideration in the e-auction confirmed in his name.
2. The petitioner states that he is temporarily residing in Saudi Arabia. He responded to Ext.P2 e-auction notice dated 06.11.2021 published by the 1st respondent-Bank for sale of a property. The reserve price was `54,93,000/-. The petitioner quoted `25,000/- above the said amount. Accordingly, the bid was confirmed in the name of the petitioner. The petitioner states that according to the terms of the agreement, the petitioner had to deposit 25% of the bid amount first and the balance amount within 15 days. The petitioner had deposited 10% EMD of `5,49,300/- on WP(C) NO. 7537 OF 2022 3 20.11.2021. The petitioner remitted `8,30,200/- on 29.11.2021 and sought time from the respondents to pay the balance amount. The respondents granted time till 29.01.2022, which period was further extended to 22.02.2022.
3. The petitioner states that he was employed in Saudi Arabia and the Covid-19 pandemic had an adverse effect on the financial condition of the petitioner. It is for the said reason that the petitioner could not remit the amount even within the extended time granted by the Bank. The petitioner is willing to pay the outstanding amount together within one week. Unless the respondents are directed to accept the said amount and convey the property in favour of the petitioner, the petitioner will be put to untold hardship and loss.
4. Standing Counsel entered appearance on behalf of the respondents and contested the writ petition. The Standing Counsel pointed out that as per the terms of the agreement, the entire amount had to be paid by the petitioner within 15 days. The petitioner remitted only `8,30,200/- initially. The WP(C) NO. 7537 OF 2022 4 balance amount was not paid inspite of repeated requests made by the Bank authorities.
5. Taking into consideration the representations of the petitioner, the petitioner was granted extention of time till 29.01.2022 initially, which was further extended to 22.02.2022. The petitioner could not still clear the amount. In the circumstances, in view of the Rules and Regulations of the Bank, no further extention can be granted. The Standing Counsel submitted that the Bank may be permitted to forfeit the amount already deposited by the petitioner.
6. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents.
7. The petitioner, who was employed in Saudi Arabia, participated in the e-auction pursuant to Ext.P2 e-auction notice published by the respondents. The petitioner was the successful bidder. The petitioner had deposited 10% EMD of `5,49,300/- on 20.11.2021. The petitioner remitted another WP(C) NO. 7537 OF 2022 5 `8,30,200/- on 29.11.2021. The balance amount could not be deposited within the stipulated time.
8. The petitioner sought enlargement of time and taking into consideration the fact situation, the Bank has extended the time till 29.01.2022 initially and thereafter again upto 22.02.2022. It appears that the petitioner could not raise the entire amount by that date and sought for a short extension of time from the respondents. The respondents were not willing. It is under such circumstances that the petitioner approached this Court filing this writ petition, on 07.03.2022.
9. Taking into consideration the fact that the petitioner is a bonafide bidder, in whose favour the e-auction was confirmed and taking into consideration the fact that the petitioner has paid 10% EMD of `5,49,300/- and another remittance of `8,30,200/- on 29.11.2021 and also taking into consideration the fact that the petitioner was employed abroad and the Covid-19 pandemic has adversely affected his WP(C) NO. 7537 OF 2022 6 financial condition, this Court is of the view that it will be highly arbitrary and harsh to deny the auctioned property, when the sale is confirmed in favour of the petitioner and when the petitioner and is ready and willing to pay the entire outstanding amount. It is to be noted that the original borrower, to whom the property belongs, has filed Ext.P7 affidavit in this Court pointing out that he will not be raising any objection to the sale of property in favour of the petitioner.
In the circumstances, the writ petition is disposed of permitting the petitioner to pay the balance amount due to the Bank pursuant to Ext.P2, within a period of one week from today. The petitioner shall also pay an additional amount of `1,00,000/- towards cost to the Bank.
sd/-
N.NAGARESH JUDGE hmh WP(C) NO. 7537 OF 2022 7 APPENDIX OF WP(C) 7537/2022 PETITIONER EXHIBITS Exhibit P-1 TRUE COPY OF THE POWER OF ATTORNEY EXECUTED BY THE PETITIONER IN FAVOUR OF HIS BROTHER MOIDEENKUTTY DATED 10-01- 2022 Exhibit P-2 TRUE COPY OF THE E-AUCTION NOTICE DATED 06-11-2021 ISSUED BY THE 2ND RESPONDENT Exhibit P-3 TRUE COPY OF THE LETTER DATED 24-11-
2021 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P-4 TRUE COPY OF THE BANK CHALAN DATED 20-
11-2021 AND 29-11-2021 REMITTING THE ABOVE AMOUNTS Exhibit P-5 TRUE COPY OF THE SALE CONFIRMATION LETTER DATED 18-12-2021 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER Exhibit P-6 TRUE COPY OF THE LETTER ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER DATED 19-02-2022 EXHIBIT P7 TRUE COPY OF THE NO OBJECTION LETTER ISSUED BY THE ORIGINAL BORROWER CERTIFIED BY NOTARY DATED 15.09.2021 RESPONDENT'S EXHIBITS ANNEXURE B1 TRUE COPY OF SALE NOTICE DATED 06.11.2021 ALONG WITH TERMS AND CONDITIONS.