KOCHI: Observing the sale of mortgaged property by UCO Bank is vitiated, the Kerala High Court has held the power to take possession of a property of the defaulter and transferring it must be exercised cautiously and fairly.
The court issued the order on a petition filed by K T Unnikrishnan, of Cherthala, Alappuzha, challenging the order of the bank to sell a property mortgaged by him under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for availing loan.The petitioner submitted his property, which was sold in the proceedings initiated under the Act, is situated on the side of National Highway and it is worth more than Rs 3 crore.
But the bank sold the land recklessly for a paltry sum of Rs 85,60,000, when the liability was about 1.5 crore and when there is no other security for realisation of the deficit amount, the plea stated.
The manager of the bank, who was present in the court, agreed the sale can be set aside if the petitioner liquidates the entire liability.