IMPORTANT POINT
The bank retains the right to recover debts through mortgaged properties even if the borrower sells the property to a third party, as established under the SARFAESI Act, 2002.

JUDGMENT :

Sujit Narayan Prasad, J.

Prayer

1. The instant intra-court appeal is under Clause-10 of Letters Patent directed against the order dated 20.07.2023 passed in W.P.(C) No.5387 of 2018, whereby and whereunder, it has been observed that the Bank is no longer holder of claim of recovery through the land which has been mortgage by the borrower for the purpose of advance.

Facts

2. The brief facts of the case, as per the pleading made in the writ petition, are required to be enumerated, which read as under:-

3. It is the case that the writ petitioner being the local resident of Ramgarh came across with the advertisement dated 26.05 2017 published under the authority of the Authorised Officer UCO Bank whereby the immovable properties as detailed in the said advertisement was put on e-auction sale to be conducted on 26.06.2017.

4. In the said advertisement for e-auction sale notice the details of four immovable properties which were put on e-auction sale was given out of which the petitioner expressed his intention to purchase the property mentioned at serial no.1 having RS Plot No. 399, 449 sub plot no. 399, 449/2, Khata No. 36, deed no 2635/2349/2006 dated 18.02.2006, area 6 decimal, Thana Ormanjhi, Mouza IRBA, Ranchi standing in the name of Md. Imran, son of Late Md. Sultan.

5. The reserve price for the said property was fixed for a sum of Rs.4,50,000/-and EMD for participating in the auction sale was fixed at Rs.45,000/-.

6. As per the instruction of the bank, the writ petitioner paid the entire bid amount amounting to Rs.4,60,000/-and thereafter, on acceptance of the entire money a sale certificate dated 23.08.2017 was issued under Rule 9(6) of the Security Interest (Enforcement) Rules, 2002 in favour of the petitioner wherein it has been specifically mentioned that the immovable property has been sold by UCO Bank in favour of the petitioner and also acknowledged the receipt of the sale price in full and handed over the delivery and possession of the scheduled property.

7. In the sale certificate that the sale of the scheduled property was made free from all encumbrances known to the secured creditor listed below on deposit of the money demanded by the Authorized Officer of the bank.

8. After obtaining the sale certificate with respect to the landed property having area of 6 decimal at Block IRBA, the petitioner approached the bank for handing over the possession of the land but, the petitioner was assured that since it is a vacant land which has already been shown by the officer of the bank there is no difficulty in getting the possession of the land and further that in the meantime, the petitioner was instructed to get the registered sale deed executed in their favour.

9. In the said process of registration of the sale deed of the land purchased by the petitioner, the Registry office instructed the petitioner to update the payment of rent receipts and accordingly, as per the instruction petitioner made payment of the rent for the said land which was shown to be recorded in the name of Md. Imran and accordingly, petitioner paid up-to-date rent for the said after making payment of the rent up-to-date the rent receipt was issued with respect to the immovable property purchased by the petitioner and thereafter the purchased land was also registered in favour of the petitioner by the Authorised Officer of the UCO Bank in terms of registered sale deed dated 02 11 2017 for which the petitioner has to make payment of the huge stamp duty and also the registration fees for getting the land registered in favour of the petitioner.

10. The petitioner approached the Circle Officer Ormanjhi to get the land mutated in his favour however the application filed by the petitioner has been rejected by the Circle Officer, Ormanjhi in terms of the objection dated 16.03.2018 raised by the Circle Officer, wherein, it has been stated that Khata No 36, plot no 399. area 6 decimal has been found to be recorded in the name of Md. Imran which was mutated in term