Harsh Agarwal v. Union Bank of India and 5 Ors.

Appeal Dy. No. 136/2022 Date: 28.04.2022

Harsh Agarwal Vs. Union Bank of India

Present: Shri Ajay Kumar Singh, counsel for the appellant,

Heard the learned counsel for the appellant.

Learned counsel for the appellant submits that the appellant is a bonafide purchaser of Flat No. 12/A, Ground Floor, Kasmanda Regent Apartment, 2 Park Road, Hajaratganj, Lucknow, which he had purchased after obtaining non encumbrance certificate from the competent authority for the period from 1994 to 2006 and he is in possession of the said property since 2006 till date. Further, the respondent no. 2 is a partnership firm, which had taken loan from the Andhra bank through its partners respondents no. 3 to 5. The Andhra Bank has now merged with the Union Bank of India. The borrowers had mortgaged the property in question along with Flat No. 511, 5^th Floor of the said apartment and hypothecated 06 nos. elevators with the respondent-Bank for securing the loan. It is contended that the borrowers without disclosing the fact that the property in question has already been mortgaged with the Bank, sold the same to the appellant in the year 2006. It is further contended that without any service of notice, the respondent-Bank sold the property in question to the respondent no. 6 by publishing the auction notice on 06.12.2009, whereas the borrowers had already given their consent to sell the Flat No. 511 of the same apartment to recover the dues. Thereafter, the appellant challenged the entire proceedings of the Bank by filing the S.A. No. 09/2010 before the Tribunal below, in which the interim order was granted in favour of the appellant, but after some time, it was vacated by the Tribunal below, therefore, the appellant filed an appeal before this Tribunal, which was disposed off vide order dated 15.05.2011 with direction that the parties shall maintain the status quo with regard to the property in question subject to deposit Rs. 15.00