An extent of 1.41.50 acres of land belonging to the predecessor-in-interest of the petitioner was mortgaged to the first respondent Bank for availing three loans totalling to a sum of ` 1,25,000/-. The total liability swelled up by lapse of time and the property was purchased in auction by the first respondent Bank for a sum of ` 2,63,293/- on 23.3.2001. The Bank is still holding on to the property and has no serious objection to hand over the same to the legal heirs of the loanee on the dues being cleared up to date with compensatory costs.
2. A Division Bench of this Court in W.A.No.182/2010 has held that the Bank should be more eager to have liquidity in cash than retaining the property purchased in sale. I follow the same course and set aside Exts.P4 and P5 orders issued by the third respondent confirming the sale of the property in favour of the first respondent Bank. This is ofcourse subject to the condition that the petitioner pays interest @ 18% per annum on the sum of ` 2,63,293/- W.P(C) No.31412 of 2010 2 from 23.3.2001 till the date of payment which has to take place on or before 31.5.2015. The interest as above will include the expenses incurred by the Bank for the conduct of sale as well as for litigation and also compensation for setting aside the sale.
3. The Sub Registrar will reverse the entries made in the property and restore the same in favour of the legal heirs of the loanee on the communication sent by the first respondent Bank. This is ofcourse on the petitioner clearing the dues as above within the time permitted.
The Writ Petition is disposed of.
Sd/-
V.CHITAMBARESH, Judge.
nj.