- (1.) The instant petition filed under Article 226 of the Constitution prays for quashing auction notice dated 20.5.2011, issued under the provisions of the Security Interest Enforcement Rules, 2002 read with Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, by the authorised officer of State Bank of Patiala, Gill Road Branch, Ludhiana (P-3). Prayer has also been made for directing the respondents for one time settlement of the loan account.
(2.) Brief facts of the case are that Smt. Rajni Balarespondent No. 5 obtained a housing loan of Rs. 5,00,000/- from the respondent State Bank of Patiala, Gill Road Branch, Ludhiana, by mortgaging her property measuring 100 square yards, situated in Rasila Nagar Ludhiana, comprised in Khata No. 316/3561, Khasra No. 79//9/1 as per Jamabandi for the year 2001-02 of Kuliewal, H.B. No. 178, Tehsil and District Ludhiana.
(3.) Respondent No. 5 sold the said property to the petitioner vide sale deed dated 30.8.2006 (P-1) and mutation No. 22309 was also entered in her favour. However, later on the petitioner realised that the property in question is not free from encumbrances. Thereafter, the petitioner and respondent No. 5 arrived at an understanding according to which the petitioner started paying the outstanding loan amount and deposited an amount of Rs. 3,00,000/- in Account No. 55012237213. In para 6 of the petition, the petitioner has claimed that she was ready and willing to deposit the remaining amount but the respondent Bank has refused to accept further payment from her and issued the impugned auction notice dated 20.5.2011 (P-3). In order to show her bonafide, the petitioner has placed on record copy of the Banker's Cheque No. 329061, dated 31.5.2011, amounting to Rs. 2,00,000/- (P-4), which the respondent Bank has refused to accept. It has also been pointed out that the respondent Bank has also filed a recovery suit against respondent No. 5 and others wherein the petitioner has been arrayed as defendant No. 3 (P-5). The petitioner is ready and willing to arrive at one time settlement with the respondent Bank by paying the remaining outstanding loan amount.;