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2022 Supreme(Online)(Kar) 50366
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 08TH DAY OF APRIL, 2022
BEFORE
THE HON'BLE MR.JUSTICE S.G.PANDIT
WRIT PETITION NO.18338 OF 2021 (GM-RES)
BETWEEN:
DR.A.REKHA,
D/O A. SATHYANARAYANA,
AGED 25 YEARS,
R/AT <JANAPRIYA APARTMENT=
CHIKKABANAVARA,
BANGALORE - 5600
... PETITIONER
(BY SRI. CHANDRANATH ARIGA K, ADVOCATE)
AND:
1 .
THE AUTHORIZED OFFICER ,
ARCIL
ASSET RECONSTRUCTION COMPANY (INDIA ) LTD.,
HAVING ITS REGISTERED OFFICE AT
THE RUBY, 10TH FLOOR,
29, SENAPATI BAPTI MARG,
DADAR (W), MUMBAI 3 400 028
HAVING ITS OFFICE AT
UNIT NO.305, 3RD FLOOR,
KEDIA ARCADE,
NO 92, INFANTRY ROAD,
BANGALORE 3 560 001.
2 .
SRI. A. SATHYANARAYANA,
S/O LATE ARAVA THIPPANNA,
R/A JYOTHI GARMENTS,
2
OLD BUS STAND ROAD,
HOSAPETE 3 583 201.
3.
G. SRIDHAR,
S/O LATE G. BASALINGAPPA,
AGED ABOUT 49 YEARS,
R/AT NO.33, WARD NO.18,
S.R.NAGAR, HOSPET 3 583 201.
... RESPONDENTS
(BY SRI. S. RAMAKRISHNA, ADVOCATE FOR R1;
SRI. DUKE DEVAIAH, ADVOCATE FOR R2;
SRI. KIRAN KUMAR, ADVOCATE FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES
226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO
SET ASIDE THE E-AUCTION PROCEEDINGS DTD.13.9.2021
IN RESPECT OF THE SCHEDULE PROPERTY; AND ETC.,
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
The petitioner as well as respondents No.1 and 2
have filed a joint memo under Order 23 Rule 3 of CPC
and prays for disposal of the writ petition in terms of
the settlement.
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2.
The settlement/Joint memo is signed by
the petitioner as well as the first and second
respondents along with their respective Advocates.
The petitioner and second respondent who are before
this Court are identified by their respective counsels.
As per the terms of joint memo, the 2nd respondent
has agreed to pay Rs.2,01,25,000/- in discharge of
guarantor9s mortgage liability in respect of the
schedule property and accordingly the 2nd respondent
has paid entire amount.
The joint memo reads as below:
<The Petitioner and the Respondents 1 and
2 respectfully submit as under:
1.
The Petitioner is the daughter of
Respondent No.3. The Respondent No.2
was the guarantor to M/s. Sree Hari Priya
Rice Industries, Ballari and had mortgaged
the property more fully described in the
Schedule to this Petition in favour of State
Bank of India, Ballari, since assigned to
Respondent No.1.
2.
The secured creditor i.e., ARCIL, the
1st Respondent herein had brought the
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Schedule
Property
for
Auction.
The
Petitioner had challenged the proposed
Auction of the Schedule Property to be held
13-09-2021 before the Debts Recovery
Tribunal-I
at
Bangalore
in
NDN
No.1370/201. In that Proceeding, the 1st
Respondent
had
entered
caveat
and
opposed the grant of interim order for stay
of the auction/sale. Subsequently the 1st
Respondent stated that the auction was
held. The Petitioner filed the above Writ
Petition with a prayer to set aside the E-
Auction proceedings dated 13-09-2021 in
respect of the schedule property.
3.
This Hon9ble Court by an order dated
08-10-2021
ordered
that
the
Sale
Certificate pursuant to e-auction held on
13-09-2021 shall not be issued nor the sale
be confirmed till next date of hearing.
4.
The 1st Respondent is approached by
the
2nd
Respondent
and
his
family
members and they offered to pay a sum of
Rs.2,01,25,000/- (Rupees Two Crores One
Lakh Twenty Five Thousand) in full and
final settlement of al the claim by the 1st
Respondent against the 2nd Respondent
and in respect of the Schedule Property.
5.
The 1st Respondent considered the
offer made by the Respondent No.2 and his
family members and has agreed to release
the Schedule Property from the mortgage
free from claim by the auction purchaser or
the Auction dated 13-9-2021 and to release
Respondent No.2 from the said guarantee-
liability.
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6.
Accordingly this Compromise Petition
is
entered
between
the
Petitioner,
Respondent No.1 i.e., Asset Reconstruction
Company (India) Ltd., (ARCIL) represented
herein
by
its
Authorized
officer
and
Respondent No.2 with the following terms:
a.
The Respondent No.1 hereby
accepts Rs.2,01,25,000/- (Rupees Two
Crores
One
Lakh
Twenty
Five
Thousand)
in
discharge
of
the
guarantee and mortgage liability of the
Respondent No.2 in respect to the
Schedule Property by Demand Draft
bearing No.506789 of Rs.1,77,25,000/-
dated: 19.03.2022 and 508258 of
Rs.24,00,000/-
dated:
15.02.2022
drawn
ICICI
Bank,
MG
Road,
Bangalore.
The
Respondent
No.1
accepts the same subject to realization.
b.
The Respondent No.1 shall issue
a Letter of Release in favour of the
Respondent No.2 that the Schedule
Property is released/discharge from the
mortgage and the guarantee liability.
The mortgage of he Schedule Property
is discharged.
c.
The
Respondent
No.1
shall
return the original title deeds and hand
over the possession of the mortgaged
Schedule Property to the Respondent
No.2 only after the realization of the
aforesaid Demand Drafts.
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d.
The 1st Respondent shall refund
the amount of Rs.50,31,250/- to the
auction purchaser. The 2nd Respondent
shall
pay
simple
interest
on
Rs.50,31,250/- at the rate of 7% to the
auction purchaser.
The parties above named having agreed for
the terms set out above and have settled
their claim have set their signature to this
compromise petition.=
4.
Joint memo also indicate
