- (1.) The writ petition is to quash the auction of the residential house, which was scheduled to take place on 07.02.2011, brought at the instance of the 1st respondent-Bank under the provisions of the SARFAESI Act. He had also sought for permission for locating of better buyer for selling the house. This prayer was made after two rounds of earlier litigation. At a previous time in the year 2010, when the notice had been issued under the SARFAESI Act, warning him of action of possession and sale, the petitioner had preferred a SA No. 26 of 2010 before the Debts Recovery Tribunal (DRT), Chandigarh. The DRT negotiated for the benefit of both parties a schedule of repayment, providing to the petitioner three installments to clear the dues commencing from 31.05.2010 to 31.07.2010. The petitioner did not pay any amount although he had agreed for such a course.
(2.) The petitioner wanted to resile from the undertaking given before the DRT on the basis of which, the order was passed on 30.04.2010 by contending that he had not given any such authority to his counsel to make the payment within the specified time. He simultaneously approached this Court in CWP No. 11089 of 2010 seeking for quashing of the proceedings taken under the SARFAESI Act. This Court took notice of the application said to have been filed for recalling of the order passed by the DRT and directed the DRT to dispose of the application moved by the petitioner for the modification of the order dated 30.04.2010.
(3.) The DRT maintained its earlier order and when the money had not been paid, the Bank issued a possession-cum-sale notice setting the date of possession and the sale took place on 07.02.2011, the up-set price was fixed at Rs. 8.50 lakhs. He had moved this Court in the above said writ petition on 15.02.2011. It appears that the property was sold for Rs. 10.65 lakhs against the up-set price fixed at Rs. 8.50 lakhs and confirmed on 09.02.2011. 20% of the amount had been deposited and the counsel for the Bank reports that the balance amount had also been paid within the stipulated time. The petitioner filed the writ petition on 15.02.2011 representing that the property was worth Rs. 30 lakhs and that he would bring a better buyer at the next hearing. The Court had directed notice to be issued for 06.07.2011. At the next hearing on 06.07.2011, the petitioner brought no willing buyer before the Court but the counsel represented that he had entered into an agreement with the third party on 10.09.2010 for an offer of about Rs. 13 lakhs for the property.;