Debts Recovery Tribunal deals blow to Washim coop bank

AKOLA: Washim Urban Co-Operative Bank received a setback in disposing of the property of a mortgagor for not observing due process of law. Presiding officer of Debts Recovery Tribunal, Nagpur Irshad Husain has allowed the securitisation application and directed the bank authorities to hand over peaceful possession of the mortgaged land to applicant Jasmindersing Triloksing Johar of Washim. 

The presiding officer also directed the bank officials to return
the sale proceeds to purchasers Siddheshwar Kundlikrao Lonsune and Anandrao Shyamrao Lonsune, also of Washim, with an interest of 6% per annum from the date of receipt of the deed. He also set aside and cancelled the sale certificate dated December 21, 2009 issued by the bank. Husain said that the bank will be at liberty to take action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. 

Jasmindersing had mortgaged his non-agricultural one acre land situated at Zakalwadi, bearing field survey number 113, gut number 33 and sheet number 32. The applicant had initially taken a loan of Rs 5 lakh for housing to construct hotel Mandeep in 2000 and mortgaged the property. Later, the bank disbursed Rs 42 lakh by way of cash credit without taking further security. But Jasmindersing defaulted in repayment of loan following which the bank allegedly took illegal possession of the property and auctioned it for Rs 47 lakh, which was much less than the market value. The present value of the property was said to be Rs 71,09,320. 

It was maintained that the bank, which secured assets for Rs 5 lakh, had no right under Securitisation Act to auction property for recovery of Rs 47 lakh in the instant case. Therefore, presiding officer Irshad Husain delivered the judgment in favour of the applicant on November 30. He rejected the request of the bank to suspend the operation of the judgment as Anup Lohiya, counsel for the applicant, objected to stay its operation. Advocate Ashish Patil also supported the stand. 

A twist to the tale came when applicant Jasmindersing started an indefinite fast at Washim soon after the verdict as the bank officials did not pay heed to the directives of the tribunal. On the sixth day of his fast, BJP MLA Lakhan Malik intervened and Jasmindersing ended the strike. Jasmindersing met Washim collector during Lokshahi Din on Monday and apprised him of the situation. The collector then directed the tehsildar to take action against the guilty. Jasmindersing told TOI that the tehsildar has demanded police protection for taking possession of the land.
Courtesy : The Times of India