Jainath Durgam v. Canara Bank,

THE HON'BLE SRI JUSTICE SANJAY KUMAR AND THE HON'BLE Dr. JUSTICE B. SIVA SANKARA RAO WRIT PETITION No.22732 of 2016 ORDER: (Per Hon'ble Sri Justice Sanjay Kumar) Heard Sri S. Maruthi Rao, learned counsel for the petitioner, and Sri Deepak Bhattacharjee, learned counsel appearing for the respondent bank.

The petitioner lays a challenge to the auction notice dated 09.06.2016 issued by the respondent bank whereby the sale of secured assets is proposed to be held on 14.07.2016. No substantial ground of challenge has been raised in this writ petition but, Sri S. Maruthi Rao, learned counsel for the petitioner, would state that his client is anxious to discharge his entire outstanding liability to the respondent bank. As Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, enables the borrower to redeem the property prior to the transfer of the secured asset, we are inclined to grant some time to the petitioner to prove his bona fides. The respondent bank is therefore permitted to proceed with the auction sale proposed to be held on 14.07.2016.

However, the said sale shall not be confirmed and the respondent bank shall not collect more than 25% of the bid amount from the auction purchaser(s), if any. The petitioner shall discharge 50% of the entire outstanding dues along with interest and incidental expenses on or before 29.07.2016. The balance 50% of the outstanding dues along with interest and incidental expenses shall be paid by him on or before 16.08.2016. In the event the petitioner fails to make either of the afore-stated payments, the respondent bank is given liberty to proceed in the matter in accordance with law.

The writ petition is accordingly disposed of. Pending

miscellaneous petitions, if any, shall stand closed in the light of this final order. No order as to costs.

_______________ SANJAY KUMAR, J _____________________ Dr. B. SIVA SANKARA RAO, J 13th July, 2016 IBL