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2017 DIGILAW 1515 (SC)

Laxmi Agarwal v. K. Padma

2017-10-03

NAVIN SINHA, RANJAN GOGOI

body2017
ORDER : Leave granted. 2. We have heard the learned counsels for the parties. 3. Having regard to the facts of the case, we are of the view that the principles of equity should be invoked to pass final orders in the present appeals before us. 4. The owner of the property (i.e. Laxmi Agarwal, appellant in Civil Appeal arising out of Special Leave Petition (Civil) No.3288 of 2015) who was in default is still in possession of the property though the same was sold by way of auction way back in the year 2004. The respondent - Bank (State Bank of India), perhaps, because the sale of the property in question had gone into litigation, accepted payment of its dues which was tendered in the year 2013 by the respondent - Company of which the appellant (i.e. Laxmi Agarwal) was the Director. In this way, the amount due to the respondent - Bank had again been recovered despite the fact that the property in question had been earlier sold by the Bank in auction. 5. Taking into account the aforesaid facts; that the property in question is residential property; that the auction purchaser is not in possession thereof and the appellant (i.e. Laxmi Agarwal) continued to remain in possession of the property in question; and further the dues of the Bank has been settled by the appellant, we are of the view that the ends of justice would be met if we continue the possession of the property with the appellant (i.e. Laxmi Agarwal) subject to the outcome of suit for specific performance filed against the appellant (i.e. Laxmi Agarwal) by the respondent No.2 [K. Ramachandra] who is the appellant in the Civil Appeal arising out of Special Leave Petition (Civil) No.27894 of 2015]. 6. Insofar as the auction purchaser is concerned we direct that the amount of Rs. 32.50 lakhs (sale proceeds of the auction) lying in deposit with the Recovery Officer be returned to the auction purchaser with interest thereon at the rate of 9% per annum from the date of deposit of the said amount with the Recovery Officer till the date of repayment by the respondent - Bank. We deem it proper to pass the present order keeping in mind the conduct of the Bank and also the statement made on behalf of the auction - purchaser that the amount of Rs. We deem it proper to pass the present order keeping in mind the conduct of the Bank and also the statement made on behalf of the auction - purchaser that the amount of Rs. 32.50 lakhs which was the sale price in the auction has been partly obtained by the auction purchaser by way of a loan from the respondent - Bank itself and that the said loan is being serviced by payment of interest at the rate of 9% per annum. 7. With the aforesaid modification of the order of the High Court the present appeals are disposed of.