PUNJAB AND SIND BANK Vs. RAMANAND SINGH

JUDGEMENT

(1.) THE whole controversy in this second appeal centres around the question whether the subsequent buyers of the property which was already mortgaged with the Punjab and Sind Bank are protected under Section 41 of the Transfer of Property Act. The Recovery Officer passed the order in favour of the Bank but the first Appellate Court presided over by the DRT reversed his order vide judgment dated 3rd January, 2008. Aggrieved by that order the present appeal has been preferred.

(2.) BRIEFLY stated the factual scenario is as follows. One Mr. Zahurul Hasan Ansari created a registered mortgage in respect of his house bearing No. 140, measuring 2502 square feet, situated at Mohalla Bagpur, Muglani alias Miyana Bazar, Gorakhpur in favour of Mr. Vasudev Shorewalaon 16th June, 1992. Vide family settlement dated 1st May, 1985 Shri Vishnu Shankar Shorewala, son of Shri Vasudev Shorewala became the owner in possession of the said mortgaged property. Shri Vishnu Shankar Shorewala after becoming the owner of the said house, converted the same into multi -storeyed shopping complex known as Krishna Complex and constructed 46 shops in the year 1986.

(3.) MR . Neeraj Kumar Shorewala created another proprietorship firm under the name of "The Cools" and he was granted CC Limit on 16th November, 1995 against the immovable property already mortgaged with the Bank.