RAKESH KUMAR GARG,J. - (1.) THE petitioner has filed the present writ petition for issuance of a writ in the nature of mandamus directing the respondents not to confirm the auction/sale dated 24.2.2006 qua the residential house of the petitioner and further that the respondents be directed not to take over the possession of the residential house of the petitioner forcibly and illegally; and further for the issuance of a writ in the nature of mandamus directing the respondents to consider the case of the petitioner in view of the scheme for compromise settlement of the accounts.
(2.) M /s. Deep Industries Bahadurgarh, District Jhajjar availed loan from the respondents-HFC and executed hypothecation deed dated 12.11.1993, 6.4.1995 and 3.7.1995 to secure repayment of financial assistance of Rs. 6.10 lacs, 2.20 lacs and 2.35 lacs as per the terms and conditions of the said loan agreement. The petitioner stood guarantor for the repayment of the said loan with interest and miscellaneous expenses and executed bonds of guarantee. The respondents-Corporation disbursed an amount of Rs. 6.04 lacs, 2.20 lacs and 2.35 lacs in the above said three accounts. The currency of all the loan accounts expired in the year 2000. The borrower failed to repay the amount forcing the Corporation to take over the possession of the primary as well as one of the collateral securities so as to sell the same to recover the amount. The primary security as well as the collateral security was disposed of and the respondents-Corporation received the amount of Rs. 4.30 lacs and Rs. 6.40 lacs on this account. Since the sale proceeds recovered from the sale of primary and collateral securities were not sufficient to adjust the outstanding loan, the Corporation proceeded to take over and auction the residential house mortgaged by the petitioner. It is the case of the petitioner that the respondents-Corporation has acted in an illegal manner and without adopting the due procedure as stipulated under the provisions of the State Financial Corporations Act and is now trying to take over the physical possession of the only residential house of the petitioner. It is also alleged by the petitioner that the respondents- Corporation have auctioned the said house in an open auction on 24.2.2006 and the said auction has been conducted in violation of the principles of natural justice. The petitioner has also averred that he is ready and willing to make the payment and settle the loan arrears in terms of the policy (Annexure P-1) of the respondents.
(3.) THE respondents-Corporation contested the claim of the petitioner and taken the stand in the written statement that the sale of the disputed house has already been confirmed on 6.9.2006 for a sum of Rs. 6.30 lacs and the auction purchaser has deposited the entire sale consideration and even after the adjustment of above sale proceeds, the Corporation has still to recover approximately an amount of Rs. 49.85 lacs with interest.;