Petitioner filed a writ petition to set aside an auction sale and seek reconveyance of property after defaulting on a loan but subsequently discharging the entire liability. The court directed the bank to execute a registered deed for reconveyance.
Bank directed to execute registered deed for reconveyance of property to petitioner or nominee.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE
TUESDAY, THE 15TH DAY OF NOVEMBER 2016/24TH KARTHIKA, 1938
WP(C).No. 9871 of 2014 (H)
PETITIONER(S):
ELIKUTTY THOMAS, AGED 65 YEARS, W/O.THOMAS, KIZHAKKETHALAKKAL HOUSE, POONJAR THEKKEKARA VILLAGE, POONJAR, KOTTAYAM.
BY ADV. SRI.S.VIDYASAGAR
RESPONDENTS:-:
1. THE REGISTRAR, CO-OPERATIVE SOCIETIES (GENERAL), OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), KOTTAYAM-686 039.
2. THE ASSISTANT REGISTRAR (GENERAL), CO-OPERATIVE SOCIETIES, OFFICE OF THE ASSISTANT REGISTRAR (GENERAL) CO-OPERATIVE SOCIETIES, PALAI-686 575.
3. MEENACHIL EAST URBAN CO-OPERATIVE BANK NO.4266, POONJAR THEKKEKARA VILLAGE, ERATTUPETTA TALUK, KOTTAYAM DISTRICT, REPRESENTED BY ITS GENERAL MANAGER. PIN-686 581.
R1 & R2 BY GOVT. PLEADER SRI.T.S. SHYAM PRASAD. R3 BY ADVS. SRI.SHAJI THOMAS PORKKATTIL, SRI.N.NAGARESH, SRI.BINU PAUL, SRI.T.V.VINU.
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 15-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
rs.
WP(C).No. 9871 of 2014 (H)
APPENDIX
PETITIONER'S EXHIBITS:-
RESPONDENT'S EXHIBITS:-
//TRUE COPY//
P.S. TO JUDGE
rs.
A. MUHAMED MUSTAQUE, J.
W.P.(C) No. 9871 of 2014
Dated this the 15th day of November, 2016
J U D G M E N T
The petitioner availed a loan from the 3rd respondent bank. Consequent upon default, the bank initiated arbitration proceedings and Ext.P1 award has been passed. On account of non payment, the property of the petitioner was put into auction. The bank purchased the property and the auction was confirmed. There was a challenge against the same, which was dismissed. There was yet another challenge by WP(C) No.25007/2010, in which this Court held as follows;
..2..
W.P.(C) No. 9871 of 2014
“...In my opinion, with the dismissal of W.P.(C) No.5341 of 2007, it is not open to the petitioner to canvass the correctness of the validity of the sale or to contend that the respondents ought to have afforded to her the benefits flowing from Ext.P1...”
Therefore, as far as the validity of the sale is concerned, it attained finality.
3.However, the petitioner has discharged the entire liability. Now, the only relief that the petitioner seeks is the re-conveyance of the property after setting aside the sale. In view of the fact that the sale has been confirmed, this Court cannot set aside the sale. However, the bank also expressed its willingness to re-convey the property on payment of stamp duty by the petitioner. In such circumstances, this Court is of the view that the bank shall execute necessary reconveyance in favour of the petitioner or in favour of the person nominated by the petitioner.
W.P.(C) No. 9871 of 2014
purchased by the bank, it can only be re-conveyed through a registered deed.
Sd/- A. MUHAMED MUSTAQUE JUDGE
bka/-
3 issues framed by the court
Whether the court can direct reconveyance of auctioned property when the debt has been fully discharged.
Whether the validity of the previous auction sale can be set aside on grounds of discharge of liability.
Whether the bank must execute a registered deed for reconveyance of the property.
ELIKUTTY THOMAS
THE REGISTRAR, CO-OPERATIVE SOCIETIES (GENERAL), KOTTAYAM
THE ASSISTANT REGISTRAR (GENERAL), CO-OPERATIVE SOCIETIES, PALAI
MEENACHIL EAST URBAN CO-OPERATIVE BANK NO.4266
A. MUHAMED MUSTAQUE
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
