ASHWANI KUMAR MISHRA, J. - (1.) Petitioner United Bank of India has approached this Court challenging an order passed by the Debt Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the "Appellate tribunal") dated 26.6.2016, staying e-auction of property in question, scheduled for 21.6.2016. Application for waiver has been allowed simultaneously, permitting the defaulters to deposit 25% amount till the date of auction, after adjusting the amount deposited after issuance of notice under Section 13(2) of the SARFAESI Act, 2002.
(2.) Facts in brief are that commercial loan was availed under the Prime Minister's Employment Generation Scheme by respondent firm on 19th February, 2010. Overall credit limit of Rs.23,75,000/- for Ice and Ice-cream Unit was sanctioned. It consisted of a term loan of Rs. 16,15,000/-, repayable in 84 monthly installments of Rs. 19,226/- per month, beginning from February, 2010 besides interest as given in schedule to the sanction letter. Working capital amounting to Rs. 7,16,000/- was also sanctioned and had to be paid in 84 monthly installments of Rs. 9,048/- along with interest. Terms of loan were duly accepted and a biding agreement came into being. Respondent no. 3 is the proprietor of the respondent no. 2 firm and respondent no. 4 is the guarantor. Respondent no. 4 admittedly executed a equitable mortgage of house no. 260/129/2, Himmatganj, Allahabad, which is the subject matter of e-auction.
(3.) Default in payment of loan amount in terms of loan agreement is not disputed. A notice under Section 13(2) of the SARFAESI Act was issued on 31st August, 2013, showing a liability of Rs.27,53,563/- along with future interest. Recovery notices were also issued from time to time and respondent firm requested for grant of further time to repay the amount, but to no avail. Possession notice under Section 13(4) was issued on 10 th April 2014. Ultimately bank proceeded with auction of mortgaged property vide notice dated 28.8.2014, fixing 8th October 2014 as the date of auction. Respondent nos. 2 and 3, at this stage filed a securitization appeal no. 364 of 2014 on 30th September, 2014. This appeal came to be dismissed by the Debts Recovery Tribunal (hereinafter referred to as "Tribunal") on 28th August 2015.;