{"id":53829,"date":"2010-07-20T00:00:00","date_gmt":"2010-07-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/allahabad-bank-lko-thorugh-its-vs-district-magistrate-lucknow-and-on-20-july-2010"},"modified":"2017-07-12T14:41:49","modified_gmt":"2017-07-12T09:11:49","slug":"allahabad-bank-lko-thorugh-its-vs-district-magistrate-lucknow-and-on-20-july-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/allahabad-bank-lko-thorugh-its-vs-district-magistrate-lucknow-and-on-20-july-2010","title":{"rendered":"Allahabad Bank Lko.Thorugh Its &#8230; vs District Magistrate Lucknow And &#8230; on 20 July, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Allahabad High Court<\/div>\n<div class=\"doc_title\">Allahabad Bank Lko.Thorugh Its &#8230; vs District Magistrate Lucknow And &#8230; on 20 July, 2010<\/div>\n<pre>                                    1\n\nCourt No. - 24\n\nCase :- MISC. SINGLE No. - 5940 of 2009\n\nPetitioner :- Allahabad Bank Lko.Thorugh Its Authorised Officer\nRespondent :- District Magistrate Lucknow And Ors.\nPetitioner Counsel :- Abhay Kumar\nRespondent Counsel :- C.S.C.,Manish Mathur\n\n                                ******\nHon'ble Rajiv Sharma,J.\n<\/pre>\n<p>      Heard Sri Abhay Kumar, learned Counsel for the petitioner-<br \/>\nBank and learned Standing Counsel for respondent No.1 and Sri<br \/>\nManish Mathur for opposite parties No. 2 and 3.\n<\/p>\n<p>      Through the instant writ petition, petitioner-Bank has<br \/>\nassailed the order dated 2.9.2009 passed by the opposite party<br \/>\nNo.1-District     Magistrate,     Lucknow,        whereby      petitioner&#8217;s<br \/>\napplication     moved   under     Section    14     of   Securitisation    &amp;<br \/>\nReconstruction of Financial Assets &amp; Enforcement of Security<br \/>\nInterest Act, 2002 [hereinafter referred to as &#8216;SARFAESI ACT&#8217;]<br \/>\nfor taking over the physical possession of the property mortgaged<br \/>\nby it&#8217;s Aishbagh, Lucknow Branch, was rejected.\n<\/p>\n<p>      Learned Counsel for the petitioner submits that Singh<br \/>\nAssociates had taken loan of Rs.4,00,000\/- [Four lakhs rupees<br \/>\nonly] under cash credit limit from petitioner&#8217;s Bank, namely,<br \/>\nAllahabad     Bank,   Aishbagh,    Lucknow        Branch,   Lucknow,      for<br \/>\npromoting it&#8217;s medicine business but he failed to repay the due<br \/>\namount as per the terms and conditions of the loan and as such,<br \/>\nthe petitioner&#8217;s bank declared the said account as non performing<br \/>\nasset with effect from 31.3.2007. Thereafter, the Authorized<br \/>\nOfficer, Zonal Office, Allahabad Bank, Lucknow, in exercise of his<br \/>\npower under Section 13 (2) of the SARFAESI Act, 2002, issued<br \/>\nnotice to the opposite party No.2-Sumitra Devi on 8.12.2007 but<br \/>\nthe opposite party No.2 did not pay any heed and as such, on<br \/>\n23.2.2008, the Authorized Officer, in exercise of powers under<br \/>\nSection 13 (4) of SARFAESI Act read with Rule 6 (2) and Rule 8<br \/>\n(6) of the SARFESI Act sent a notice to the opposite party No.2,<br \/>\nmentioning therein that even after issuance of demand notice on<br \/>\n8.12.2007, she failed to deposit the due amount and as such, the<br \/>\nAuthorized Officer had after seizure taken over the possession of<br \/>\nthe property described in the notice on 8.2.2008. The possession<br \/>\n<span class=\"hidden_text\">                                 2<\/span><\/p>\n<p>notice dated 14.2.2008 to the concerned property was published<br \/>\nin the local dailies &#8220;United Bharat&#8221; dated 13.2.2008 and &#8220;Business<br \/>\nStandard&#8221; and thereafter, the sale notice of the aforesaid property<br \/>\nwas published in the Lucknow Edition of &#8220;Hindustan&#8221; and<br \/>\n&#8220;Business Standard&#8221; newspapers on 26.2.2008 and 27.2.2008,<br \/>\nrespectively.\n<\/p>\n<p>      Learned Counsel for the petitioner further submits that on<br \/>\n28.3.2008, when all the tenders were opened at Zonal Office,<br \/>\nHazratganj, Lucknow, the tender applied by Sri Pradeep Kumar<br \/>\nwas found to be highest.      They were informed by the Bank<br \/>\nauthorities in this regard to deposit the rest of amount except to<br \/>\nthe amount deposited by him with the tender. Pursuant thereof,<br \/>\nthe opposite party No.3 deposited the demand draft amounting to<br \/>\nRs.5,08,750.    Thereafter, vide letter dated 10.6.2008, the<br \/>\npetitioner&#8217;s Bank informed to the opposite party No.3-Sri Pradeep<br \/>\nKumar to deposit 75% of the balance amount.           In response<br \/>\nthereof, he had sent one bank draft amounting to Rs. 4,00,000\/-<br \/>\nin favour of the Bank by the letter dated 19.6.2008, indicating<br \/>\ntherein that rest of the amount shall be paid by him after he gets<br \/>\nthe possession of the land.\n<\/p>\n<p>      Learned Counsel for the petitioner submits that though the<br \/>\nBank had taken the symbolic possession of the plot in question on<br \/>\n8.2.2008 i.e. after expiry of the period indicated in the notice<br \/>\ndated 8.12.2007 but as the physical possession of the plot in<br \/>\nquestion was not possible without the help of the police<br \/>\nadministration and as such, the Authorized Officer preferred an<br \/>\napplication under Section 14 of the SARFAESI Act before the<br \/>\nDistrict Magistrate, Lucknow-opposite party No.1 on 13.3.2008, to<br \/>\nwhich the District Magistrate, Lucknow issued notice to the<br \/>\nopposite party No.2 but he did not turn up.      Subsequently, on<br \/>\n5.11.2008, the opposite party No.3 moved an application for<br \/>\nimpleadment before the District Magistrate, Lucknow, indicating<br \/>\ntherein that the Bank authorities had auctioned the plot in<br \/>\nquestion without having their own possessing over the same and<br \/>\nas such, the Bank should be directed to refund the entire amount,<br \/>\nalready deposited by him along with 24% interest. The opposite<br \/>\nparty No.1, vide order dated 2.9.2009, rejected the petitioner&#8217;s<br \/>\napplication for obtaining physical possessing of the plot in<br \/>\n<span class=\"hidden_text\">                                  3<\/span><\/p>\n<p>question.    Feeling aggrieved, the petitioner has preferred the<br \/>\ninstant writ petition.\n<\/p>\n<p>      During the course of arguments, Sri Manish Kumar, learned<br \/>\nCounsel for the opposite parties No.3 submits that he is ready to<br \/>\ndeposit the balance amount as per the terms and conditions of the<br \/>\nauction in case the petitioner&#8217;s Bank is taking the full possession<br \/>\nand deliver the same peacefully in favour of the opposite party<br \/>\nNo.3, to which learned Counsel for the petitioner&#8217;s bank has no<br \/>\nobjection.\n<\/p>\n<p>      In view of the above, with the consent of learned Counsel<br \/>\nfor the parties, the writ petition is allowed.   The order dated<br \/>\n2.9.2009 passed by the District Magistrate, Lucknow-opposite<br \/>\nparty No.1 is hereby set-aside. The District Magistrate is directed<br \/>\nto provide necessary police assistance for execution of the order<br \/>\npassed under Section 13 of the SARFESI Act, in accordance with<br \/>\nlaw, expeditiously, say, within a period of three months from the<br \/>\ndate of receipt of a certified copy of this order.   The opposite<br \/>\nparties No. 3 is directed to deposit the balance of the amount<br \/>\nwithin one month from the date of taking over the possession by<br \/>\nthe petitioner&#8217;s bank. If such deposit being made by the opposite<br \/>\nparty No.3 as per the auction of the plot in question, the physical<br \/>\npossessing of the same will be confirmed in favour of the opposite<br \/>\nparty No.3 immediately thereafter.\n<\/p>\n<p>20.7.2010<br \/>\nAjit\/-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Allahabad High Court Allahabad Bank Lko.Thorugh Its &#8230; vs District Magistrate Lucknow And &#8230; on 20 July, 2010 1 Court No. &#8211; 24 Case :- MISC. SINGLE No. &#8211; 5940 of 2009 Petitioner :- Allahabad Bank Lko.Thorugh Its Authorised Officer Respondent :- District Magistrate Lucknow And Ors. Petitioner Counsel :- Abhay Kumar Respondent Counsel :- [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,8],"tags":[],"class_list":["post-53829","post","type-post","status-publish","format-standard","hentry","category-allahabad-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Allahabad Bank Lko.Thorugh Its ... vs District Magistrate Lucknow And ... on 20 July, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/allahabad-bank-lko-thorugh-its-vs-district-magistrate-lucknow-and-on-20-july-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Allahabad Bank Lko.Thorugh Its ... vs District Magistrate Lucknow And ... on 20 July, 2010 - Free Judgements of Supreme Court &amp; 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