Dismissed

Mohammad Zaki v. Punjab National Bank Ltd.

Rajasthan HC9 Apr 2024CW/4646/2024

Case brief

AI extract

What is this about?

In a writ petition filed to restrain a bank from taking physical possession of auctioned property, the High Court ordered the petitioner to deposit an enhanced amount of Rs. 4.25 crores with the Bank. Upon compliance, the Bank is directed to release title deeds and refrain from coercive action on this property, allowing recovery of the balance from other sources.

What did the court decide?

Petitioner to deposit Rs. 4.25 crores via DD within one week; Bank to release title deeds thereafter and refrain from coercive action on this property.

Mohammad Zaki Vs Punjab National Bank Ltd. — Banking and Recovery | Rajasthan HC (2024)

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[2024:RJ-JD:15831]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR

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S.B. Civil Writ Petition No. 4646/2024

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Mohammad Zaki S/o Late Shree Mohammad Shafi, Aged About 46 Years, R/o A-269 Shastri Nagar Jodhpur At Present Yardan Estate, Prithvi Raj Nagar, Pali Road Jodhpur, Rajasthan.

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----Petitioner

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Versus

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Punjab National Bank Ltd., through its Chief Manager Authorized Office Circle Recovery Center Plot No. 43, 2nd Floor, 10 E Road, Sardarpura, Jodhpur.

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Punjab National Bank, Branch Office through its Branch Manager Chopasani Road, Jodhpur.

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Additional District Magistrate, Jodhpur.

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----Respondents

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For Petitioner(s)	: Mr. Radhe Shyam Mankad.
For Respondent(s)	: Mr. Jagdish Vyas.

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HON'BLE MR. JUSTICE VINIT KUMAR MATHUR

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Order

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09/04/2024

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Heard learned counsel for the parties.

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The present writ petition has been filed with the following

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prayers:-

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“I. The instant writ petition may kindly be ordered to be allowed and a writ, and restrained the respondent company to take physical possession over the property to the petitioner.

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II. The instant writ petition may kindly be allowed and quashed the proceeding arising from the notice dated 27.02.2024 (Annexure-4).”

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Learned counsel for the petitioner, at the very outset, offered to pay an upfront amount of Rs.4.25 crores by way of demand draft to the respondent-Bank provided the paper possession of the

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property in auction along with requisite documents is returned back to the petitioner.

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Learned counsel for the respondent-Bank is not in a position to refute the submission made by learned counsel for the petitioner and he submits that in pursuance of the auction proceedings undertaken for the property in question, the Bank has finalized the auction to the highest bidder fetching an amount of Rs.3.21 crores. Learned counsel for the respondent-Bank further submits that sale certificate in favour of the highest bidder has not been issued so far. He also submits that the respondents may be allowed to continue the auction proceedings and finalize the same, if the petitioner fails to honour the commitment made in this order within a period of one week from today.

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Considering the submissions made at the bar, this Court is of the view that the amount offered by the petitioner for payment to the respondent-Bank is Rs.4.25 crores for release of the property which is under auction, whereas, the auction proceedings have culminated into fetching an amount of Rs.3.21 crores from the highest bidder, therefore, it will be in the interest of Bank that the amount offered by the petitioner may be taken.

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Since the sale certificate has not been issued in favour of the highest bidder, therefore, the auction proceedings have not attained finality and the Bank is very well within its right to cancel the auction proceedings in view of the situation that the same property which is under auction is fetching an enhanced amount of Rs.1.04 crore. The amount outstanding against the petitioner is being realized by the Bank to partially satisfy the dues and since the petitioner is paying Rs.1.04 crore more than the highest

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(3 of 3)

bidder, therefore, the respondent-Bank is well within its right to accept the same.

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In these circumstances, the writ petition is disposed of with a direction to the petitioner to handover a demand draft of Rs.4.25 crores to the Bank within a period of one week from today.

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If the demand draft of Rs.4.25 crores is handed over to the respondent-Bank, the respondent-Bank is directed to release the title deeds of the property in question to the petitioner immediately after obtaining the same from Debt Recovery Tribunal, Jaipur.

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It is made clear that the respondent-Bank will not take any coercive action against this property of the petitioner for recovery of the remaining outstanding amount, however, the respondentBank will be free to recover the outstanding amount from other sources of the petitioner and other borrowers who are enlisted with the Bank in accordance with law.

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(VINIT KUMAR MATHUR),J

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629-Shahenshah/-

Mohammad Zaki v. Punjab National Bank Ltd.

Case brief

What is this about?

What did the court decide?

Mohammad Zaki v. Punjab National Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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