Elite Group vs Sri M.K. Mohan Kumar and Others

V. Jagannathan, J.—This appeal is disposed of finally after hearing the learned Counsel for the parties.

The appellants were the plaintiffs in the trial Court and they are aggrieved by I.A. Nos. 2 and 3 filed by them being rejected by the trial Court and I.A. No. 2 was filed to restrain the respondents/defendants from alienating or encumbering the suit schedule property and I.A. No. 3 was to permit the plaintiffs to take part in auction proceedings initiated by the respondents 5 and 6 namely State Bank of India.

Learned Counsel for the appellants Shri V.B. Shivakumar submits that in view of the trial Court rejecting aforesaid I.As and also observing in the course of its order that even if the suit property is sold in auction, the interest of the plaintiffs can be safeguarded as the defendants 5 and 6 namely SBI has agreed to deposit the balance amount in the Court. Therefore, this Court may pass necessary orders to secure the interest of the plaintiffs.

On the other hand, learned Counsel Shri B.J. Veerendra Kumar for the respondents 1 to 4 i.e., defendants in the trial Court contended that the suit claim itself was Eighty Four Lakhs and odd and suit property is worth more than Seven Crores and amount i.e., due to the bank in respect of loan advanced by the bank is about One Crore and Eleven Lakhs and therefore, when the defendants 1 to 4 dispute the claim of the plaintiffs and when according to the defendants they are only due in a sum of rupees Twenty Five Lakhs at the most to the plaintiffs, depositing the entire balance amount in the Court, therefore, may not be necessary.

Learned Counsel Shri Deepak for respondents 5 and 6, i.e., State Bank of India on its part submitted that bank would realise its amount i.e., One Crore and Eleven Lakhs plus interest and alter realising the amount due to it, the balance amount would be deposited in the trial Court as already observed by the trial Court.

Taking note of the above submission, I am of the view that State Bank of India which is respondents 5 and 6 can be permitted to go ahead with the public auction of the suit schedule property in case of default being committed by the defendants in paying EMI regularly and if the properties are brought for sale ultimately on account of default committed by the respondents 1 to 4, the bank shall retain the amount that is due to it towards ban and interest and balance amount shall be deposited before the trial Court and thereafterwards the trial Court shall take necessary steps to deposit the amount in the bank so that it will fetch interest.

Respondents 1 to 4 are also given liberty to move the trial Court if according to them the deposit amount before the trial Court is higher than what according to the defendants, the plaintiffs are entitled.

The trial Court shall dispose of the suit itself within six months from the date of this order''s receipt. The appellants are at liberty to make necessary application before the trial Court in the event of respondents 1 to 4 paying the EMI regularly and clearing the bank loan.

The appeal is disposed of accordingly.