Uttarakhand High Court
Smt. Parvati Devi vs Bank Of Baroda & Others on 2 January, 2020
Equivalent citations: AIRONLINE 2020 UTR 3
Author: Sudhanshu Dhulia
Bench: Sudhanshu Dhulia
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Writ Petition (M/S) No.3943 of 2019
Smt. Parvati Devi ....Petitioner
Versus
Bank of Baroda & others
.......Respondents
Present:- Mr. Atul Kumar Bansal, Advocate for the petitioner.
Mr. Siddhartha Sah, Advocate, for respondent no.1/Bank.
Hon'ble Sudhanshu Dhulia, J. (Oral)
Petitioner stood as a guarantor to a loan taken by respondent no.2 i.e. M/s Himalayan Traders. Since the loan amount was not repaid by the respondent no.2, the account was declared as "Non Performing Assets" (in short "NPA"). Thereafter the bank proceeded under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (from hereinafter referred to as the "Act") for recovery of its loan amount.
2. The property which was mortgaged by the petitioner as a guarantor has already been sold in auction and it is too late in a day when the petitioner has approached this Court by means of the present writ petition. These negotiations, if any, can be made only before the auction has taken place. Sub-section (8) of Section 13 of the Act states this legal position, which is as under:-
"13. Enforcement of security interest.-
(1)....
(2)....
(3)....
(4)....
(5)....
(6)....2
(7)....
(8) Where the amount of dues of the secured creditor together will all costs, charges and expenses incurred by him is tendered to the secured creditor at any time before the date of publication of notice for public auction or inviting quotations or tender from public or private treaty for transfer by way of lease, assignment or sale of the secured assets.-
(i) the secured assets shall not be transferred by way of lease assignment or sale by the secured creditor; and
(ii) in case, any step has been taken by the secured creditor for transfer by way of lease or assignment or sale of the assets before tendering of such amount under this sub-
section, no further step shall be taken by such secured creditor for transfer by way of lease or assignment or sale of such secured assets."
3. Now at this belated stage, no relief can be granted by this Court though the petitioner can still make a representation before the Bank authorities, which shall consider the representation of the petitioner in accordance with law. However, it is made clear that the Bank shall also consider the case of the auction purchaser while doing so.
4. Let a decision be taken on the representation of the petitioner as early as possible.
5. With the aforesaid observations, the writ petition stands disposed.
6. Let a certified copy of this order be supplied today itself on payment of usual charges.
(Sudhanshu Dhulia, J.) 02.01.2020 Nitesh/