P.M. ABUBAKAR Vs. STATE OF KARNATAKA AND ORS.
SUPREME COURT OF INDIA
State of Karnataka and Ors.
Click here to view full judgement.
(1.) Delay condoned.
(2.) Leave granted.
(3.) These cross appeals have been filed by the debtor (Keshva N. Kotian) and auction-purchaser (P.M. Abubakar). As the debtor
committed default in repayment of loan to the Bank (Mahalakshmi
Co-operative Bank Limited), recovery proceedings were initiated by
the Bank. That culminated with an award passed by the Joint
Registrar Co-operative Societies, Mysore dated 02.01.2004 against
the debtor for recovery of Rs. 13, 65,899.70 with interest at 19%
p.a. As the debtor failed to pay the amount in terms of the award,
execution petition was filed. The debtor, however, filed an appeal
being Appeal No. 419 of 2004 before the Karnataka Appellate
Tribunal, Bangalore. On 21.06.2004, the Tribunal passed a
conditional order of stay requiring the debtor to deposit 40% of the
awarded amount within eight weeks, failing which the stay would
stand vacated. The debtor failed to deposit that amount. Therefore,
the bank after obtaining valuation report relating to the mortgage
property, issued notice on 2.2.2005 in Form No. 6. In spite of
notice, no payment was made by the debtor. As a result, the Bank
issued notice of attachment in Form No. 7 on 25.02.2005. The
notice of attachment was followed by a notice of auction issued on
3.3.2005, fixing the auction date as 11.04.2005. On 7.3.2005, the debtor's brother (Shri Anand Kotian) filed an objection to the said
proceedings. According to him, the property was a joint family
property. This objection was enquired into and rejected on
Copyright © Regent Computronics Pvt.Ltd.