ORDER :

1. We have heard learned counsel for the appellant -Bombay Mercantile Cooperative Bank Ltd.,¹[For short, “Cooperative Bank” or “appellant”.], Saeedul Hasan Khan, the sole proprietor of respondent no. 1 -M/s. U.P. Gun House,²[For short, “Gun House” or “respondent”.], who appears in person and Mr. Shubhranshu Padhi, learned amicus curiae.

2. The facts of the present case are peculiar.

3. In 1996, Saeedul Hasan Khan, sole proprietor of the Gun House took loan of Rs. 2,00,000/-(rupees two lakhs only) from the Cooperative Bank to establish a firearms business. The loan was secured by mortgaging immovable property,³[Measuring 3300 square feet, situated at Plot Nos. 25 and 26, Khasra no. 419, Nagaria, Radhagram Yojna, Thakurganj, Lucknow, Uttar Pradesh (for short, “the property”).].

4. On 30.02.2002, the loan was declared a Non-Performing Asset, as an amount of Rs.2,39,812.41 (rupees two lakhs thirty nine thousand eight hundred twelve and forty one paisa only) was due and payable.

5. One-time settlement offer did not materialise due to the respondent’s failure to pay.

6. On 22.03.2006 notice in re the property was issued under Section 13(2) of the Securitisation and Reconstruction of Fi