Patna High Court
Sarabjeet Singh Gandhi vs The State Bank Of India And Ors on 11 February, 2025
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.3972 of 2017
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Sarabjeet Singh Gandhi Son of Taranjit Singh Gandhi, Resident of NC- 119,
SBI Colony, Kankarbagh, Patna at present A-25, Vijay Shree Jagat Apartment,
Kankarbagh, Patna.
... ... Petitioner/s
Versus
1. The State Bank Of India
2. The Assistant General Manager Stressed Assets Recovery Branch, State
Bank of India, 2nd Floor, Main
3. The Chief Manager, Stressed Assets Recovery Branch, Patna, State Bank of
India, 2nd Floor Main Bran
4. The Authorized Officer, Stressed Assets Recovery Branch, Patna State Bank
of India, 2nd Floor, Main
5. The Deo Prasad Singh @ Deo Prasad Sinha, S/o Late Ganur Singh, R/o
Sheikhpur Bagich, P.S. Shahhn Naya, Dist.- Patna.
6. Satyendra Kumar Choudary, S/o Motilal Choudhary, R/o Vill Post Hilsa, P.S.
Hilsa, Dist.- Nalanda.
7. The State of Bihar though Collector, Patna though competent of Land
Reforms and Revenue, Patna.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. J.S.Arora, Sr. Advocate
: Mr. Manoj Kumar, Advocate
Mr. Rakesh Kumar, Adv.
Mr. Himanshu Shekhar, Adv.
For the Respondent/s : Mr. Anant Kumar Sharan, Adv.
: Mr. Prabhat Kumar Sharan, Adv.
: Mr. Hemant Kumar Sharan, Adv.
: Mr. Jayant Kumar Sharan, Adv.
Mr. Ashok Kumar, Adv.
Mr. Shailesh Kumar, Divedi. AC to AAG-12
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CORAM: HONOURABLE JUSTICE SMT. G. ANUPAMA CHAKRAVARTHY
ORAL JUDGMENT
Date : 11-02-2025
1. The Writ petition is filed commanding the
respondent bank to hand over the vacant possession
of the entire 4 katthas of land purchased by the
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petitioner, in the auction sale and the property of the
guarantor, Madhu Singh in connection with the
recovery of loan amount, against the loanee, M/s
Rishav Dev Sale. In lieu whereof, a sale certificate
was issued on 31.01.2012.
(ii). Further relief sought by the petitioner
is that respondent and the State of Bihar be directed
to give support, protection and help to the petitioner
in raising boundary wall on the said land purchased
in the auction sale by the petitioner, to prevent any
interference with the peaceful possession of the
petitioner on the said land.
2. The brief facts culled out from the Writ
petition are that one Rishabh Dev obtained a loan
from the State Bank of India(SBI), for which Madhu
Singh stood as the guarantor for the loan and
mortgage 12.75 decimals of land. The loanee failed
to repay the loan amount, accordingly, the State
Bank of India initiated proceedings under the
provisions of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest
Act (hereinafter referred to as "the Act" or
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
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SARFAESI). An auction notice was issued on
21.10.2011
by the respondent bank.
3. The petitioner emerged as the highest
bidder in the said auction and purchased the land
measuring 12.75 decimals after making full payment
of the sale amount, i.e. a sum of Rs. 55,75.000/- as
on 31.01.2012.
4. Consequently, the bank issued a sale
certificate in favour of the petitioner. However, at the
time of issuance of the sale certificate, the vacant
possession of the said four katthas of land was not
handed over to the petitioner.
5. On 21.08.2012, and 28.08.2012, the
respondent bank addressed letters to the Circle
Officer, Phulwarisharif requesting for the mutation of
the petitioner's name concerning the auctioned land.
As a result, the petitioner's name was mutated vide
Mutation Case No. 4023/7 of 2011-12 and a rent
receipt was issued in his favour. Since the vacant
possession of four katthas of land was not handed
over to the petitioner, the bank through a letter
dated 20.09.2016 informed the petitioner that there
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
is no responsibility on the bank for delivering
possession of the property, after issuing the sale
certificate.
6. Aggrieved by the bank's action, the Writ
petitioner was constrained to file CWJC No. 10014 of
2015. This Court, vide its order dated 07.02.2017,
observed that the bank authorities were obligated to
hand over the property to the petitioner in the event
of an auction sale.
7. The contents of the Writ petition further
disclose that during the intervening period, Dev
Prasad Singh executed a sale deeds of two katthas of
the said land in favour of one Satyendra Kumar
Chaudhary vide registered deed of Sale dated
06.10.2015. This fact was also brought to the notice
of the bank. Consequently, upon the instructions of
the bank, the petitioner was constrained to file
Miscellaneous Case No. 473 (M) of 2016 before the
Sub-Divisional Magistrate Sadar, Patna seeking
initiation of proceedings under Section 144 of the
Cr.P.C. However, the case was disposed of vide order
dated 05.07.2016, with an observation that the
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
dispute between the parties will not fall within the
jurisdiction of the Court. Furthermore, the petitioner
made multiple representations to the Chief Manager
of the Recovery Bank, Patna requesting for handing
over the physical possession of the land. However,
no action was taken in this regard.
8. As the bank failed to act, the petitioner
was constrained to file the present Writ petition
seeking relief granted in CWJC No. 10014 of 2015
vide order dated 07.02.2017.
9. A detailed counter affidavit was filed by
the 6th respondents contending that the land bearing
No. Tauzi No. 129, Thana No. 23, Ward No. 21, Khata
No. 11 Survey Plot No. 254 under the said Khata No.
11, measuring a total area of 23 decimals altogether
situated at Mauza Dhelwan, Phulwarisari P.S. Ram
Krishana Nagar, District Patna. The land was
exclusively allotted to Kishori Singh through a
compromise decree dated 08.05.1993, passed by
this Hon'ble Court in F.A. No. 339 of 1977 and since
then, he had been in physical possession of the land.
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
After the death of Kishori Singh, his legal heirs took
possession of the said land.
10. Naresh Singh, the son of late Kishori
Singh sold the land through four registered sale
deeds dated 15.12.1988, to four individuals namely
Rajeev Nandan, Krishna Ballabh, Ram Eqwal Singh
and Manoj Kumar Pandey. The said purchaser agreed
to leave a three foot passage in the middle portion of
the Plot No. 253 to provide access to Plot No. 254.
11. Additionally, Ram Eqwal Singh also sold
his entire land measuring one kattha in plot No. 253
to Ashok Kumar through a registered sale deed dated
19.12.1989 and since then, Ashok Kumar has been in
possession of the land.
12. Furthermore, Smt. Bageshwari Devi
widow of late Kishori Singh and his son Suresh Singh
jointly sold 31¼ decimals of plot No. 254 (measuring
23 decimals) and 8¼ decimals of plot No. 253 to
Pakiza Sahkari Grih Nirman Samiti Limited, under a
registered sale deed dated 17.02.1990.
Subsequently, on 02.04.1994, Smt. Bageshwari Devi
and Suresh Singh made corrections to the sale deed
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
dated 17.02.1990. One Sunita Kuer a member of the
Samiti, purchased 1,150.50 square feet of land from
Plot No. 253 through a registered sale deed dated
13.12.1998.
13. On 21.05.1999, Ramesh Singh S/o late
Kishori Singh sold two katthas of land to respondent
No. 5, Deo Prasad Singh throught a registered sale
deed. Since then, respondent No. 5 has been in
possession of the land. Later in the year 2015,
respondent No. 5 sold his entire two katthas land of
the land to respondent No. 6 Satyendra Kumar
Chaudhary.
14. It is specific contention of the Learned
counsel for the 6th respondent that the respondent
No. 6 is the owner of the said land and that the bank
had no authority to auction the property to third
parties, therefore, prayed to dismiss the Writ
petition.
15. On the other hand, a detailed counter
affidavit was filed by the respondent Nos. 1 to 4 on
behalf of the bank. The contents of the counter
affidavit disclose that immediately after the auction
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
sale of the mortgaged property on 09.01.2012 in
favour of the petitioner, the respondent bank
received the sale amount of Rs. 55,75000/- on
31.01.2012, issued a sale certificate in favour of the
petitioner and handed over the mortgage property to
him. Additionally, the respondent bank also assisted
him in getting his name mutated over the said land
in the record of, Anchal Padadhikari, Phulwarisharif.
Since the petitioner raised the issue of possession
only after four years, his claim is not at all tenable.
16. Additionally, the counter affidavit further
disclose that Smt Sushama Singh purchased 12.75
decimals of land comprised in Survey No. 253 of
kattha 11 from different individuals including Manoj
Kumar Pandey, Ashok Kumar Singh, Suresh Singh
and Rajeev Nandan. She obtained absolute
ownership, title, and interest in the property and got
her name mutated in the revenue records.
Subsequently, Sushama Singh sold the land to
Madhu Singh vide registered sale deed No. 20857
dated 24.08.2007.
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
17. In the meantime, M/s Rishav Dev Sales
approached the bank for sanction of a loan. After
appraisal of the loan application, the respondent
bank required the borrower to execute the security
document as well as equitable mortgage on deposit
of sale deeds. Upon securing the necessary
documents, the bank disbursed the loan amount.
Since the principal borrower defaulted on the
repayment of the loan, the bank proceeded with the
auction of the guarantor's property under SARFAESI
Act by issuing notice under Section 13(2). The
principle borrower and the guarantor were issued a
notice for the repayment of loan amount of Rs.
10,10,262/- within a period of 60 days, failing which
the steps shall be taken under other provisions of the
Act. The respondent bank also published a notice in
two leading newspapers on 31.10.2011 for the sale
of the property and accordingly, the auction was held
on the scheduled date. The petitioner participated in
the auction and offered Rs. 55,75,000/- as a highest
bidder.
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
18. The counter affidavit further disclose that
the bank accepted the sale amount and issued a sale
certificate in the favour of the petitioner on
31.10.2012. Simultaneously the bank handed over
possession of the property to the petitioner. Further,
a supplementary counter affidavit was filed by
respondent Nos. 1 to 4 reiterating the entire facts
mentioned in the original counter affidavit
particularly as stated in Para-20:-
That it is submitted here that the
Smt. Sushma Sinha altogether has
purchased 3½ katha land of Plot
No. 253 as land of part of Plot No.
253 has been sold twice and the
same has been purchased twice by
Smt. Sushma Sinha, i.e. firstly from
Suresh Singh and secondly from
Rajeev Nandan. Therefore, said
Sushma Sinha altogether
purchased only 3½ katthas
(equivalent to 10.9375 decimals=
11 decimals approx) land and not
4½ katthas land in Plot No. 253.
Though in view of the above said
facts this transaction is wrong and
illegal. Contrary to above said
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
statements, made elsewhere in writ
application is wrong, illegal
misconceived and hereby denied.
19. Further, Paragraph 20 of the
supplementary counter affidavit filed on behalf of the
respondent Nos. 1 to 4 disclose that the respondent/
bank is still ready to cooperate with the petitioner in
accordance with law, with the help of the District
Administration and police assistance to hand over
the delivery possession of the property to the
petitioner.
20. Heard the Learned Senior counsel Mr. J.S.
Arora for the petitioner as well as the the Learned
counsel for the respondents bank authorities and
private respondent and perused the record.
21. A rejoinder was also filed by the
petitioner to the supplementary counter affidavit
filed by the respondent Nos. 1 to 4 contending that
they are ready to receive possession of the property
from the bank. The entire record disclose that the
petitioner purchased the property in the auction held
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
by the respondent bank under the provisions of
SARFAESI Act.
22. On perusal of the sale certificate, it is
evident that the description of the land was
mentioned along with list of documents handed over
to the petitioner which are included in the sale
certificate such as :-
Sale certificate
Sale deed No. 20857 dated 20587
Letter of encumbrances
Land receipt- Dakhil Kharij
23. Furthermore, it is specifically contended
by the Learned counsel for the respondent bank that
that possession of the scheduled property was
delivered on 31.01.2012. However, a comparison of
the contents of the sale certificate with the
documents received by the petitioner, it is evident
that the documents do not indicate that possession
was delivered to the petitioner on the said date.
Nevertheless, the supplementary counter affidavit
clearly disclose that the respondent is ready to
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
deliver the property with the assistance of District
Administration and police officials.
24. Therefore, this Court is of the considered
view that the auction purchaser should not suffer
after investing a huge amount with the bank. It is an
admitted fact that the bank received the amount
from the petitioner way back on 31.01.2012. Despite
this, the petitioner has ben suffering till date, for not
receiving the possession of the property from the
bank.
25. It is pertinent to mention that the
petitioner had not sought any relief against the 6 th
respondent/private party. If at all the 6th respondent
had any grievance against the auction made by the
bank, he would have challenged the proceedings of
the bank before the appropriate authority. This Court
cannot decide the dispute of the title and if at all the
6th respondent is aggrieved by the action of the
bank, it is for him to challenge it before the
appropriate forum.
26. In view of the above discussion, the Writ
petition is partly allowed, directing the respondent-
Patna High Court CWJC No.3972 of 2017 dt.11-02-2025
bank to hand over the entire four katthas of land
purchased by the petitioner in the auction sale of
Madhu Singh's property, for which the sale certificate
was issued on 31.01.2012.
27. Further, respondent No. 7/State of Bihar,
represented by the Collector, shall provide
assistance to the bank authorities in complying with
the orders of this Court. The bank is directed to
complete this process within a period of two months
from the date of receipt of this order.
(G. Anupama Chakravarthy, J)
Manishkr/-
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