The court granted time for private sale of mortgaged property pending loan default, ensuring protection from immediate sale.

JUDGMENT

The petitioner along with her sibling and late mother had stood as sureties for chitties conducted by the 1^st respondent and even mortgaged a property having an extent of 16.3 cents in Re-survey No.470/2 at Velipram Desom, Kozhikode. Due to default in repayment of the chitty loan, proceedings have been initiated against the petitioner and others. Property mortgaged by the petitioner has been brought for sale as per Ext.P1. The sale is scheduled to be held on 27.02.2026. According to the petitioner, the property now brought for sale has a value of more than rupees two crores, while the liability is only Rs.75,01,376/- and therefore the petitioner may be given an opportunity to have a private sale is even ready to execute a tripartite agreement with the prospective purchaser, to enable him to obtain the maximum market value.

2. The learned Standing Counsel, upon instructions, submitted that the liability due from the petitioner as on 28.02.2026 is Rs.1,83,23,143/-. It was also submitted that notwithstanding the property being scheduled for sale to tomorrow the respondents are willing to grant a reasonable breathing time to the petitioner to enable him to identify a prospective purchaser for effecting a private sale of the property, on condition that the time limit so granted shall scrupulously be complied with and in the event of any default, the respondents be given the liberty to proceed with the sale of the property from the stage at which it is kept in abeyance.

3. Having heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents, this Court is of the view that, considering the fair stance adopted by the respondents, the writ petition can be disposed of giving the benefit as agreed to by the 1^st respondent.

4. Accordingly, this writ petition is disposed of on the following conditions:

(i) The sale scheduled as per Ext.P1 shall stand stayed for a period of three months from

27.02.2026.

(ii) If the petitioner identifies a bonafide purchaser within the said period of three months, the petitioner and the 1^st respondent shall enter into a tripartite agreement with the said purchaser and if the entire amount due to the 1^st respondent is received pursuant to the said arrangement within the said period of three months, the respondents shall release the property put up for sale.

(iii) However, if in case, the petitioner fails to abide by the above stipulation, including the time line prescribed therein, the respondents will be at liberty to proceed with the sale by issuing a fresh notice, thereafter.

The writ petition is disposed of as above.

Sd/-