Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Auction: Mortgage of property |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Auction: Mortgage of property to the appeliant-bank for raising loan for family business — Default in repayment of loan — OA by bank before DRT — DRT referred matter for settlement before Lok Adalat ~ Award passed whereunder borrower agreed to pay Rs. 33.5 lacs as final settlement — Whit petition by first respondent-guaranitor seeking setting aside of the award of Lok Adalat on the ground that settlement was not within her knowledge as she had not signed the joint memo — Writ petition dismissed and writ appeal was permitied to be withdrawn with liberty to approach Lok Adalat for appropriate relief — Meanwhile auction was conducted — High Court Lok Adalat held that guarantor not being a party to the joint memo, the decree was not binding on her — Auction purchaser filed writ petition challenging the inherent power of Lok Adalat, the action of the DRT in deciding interim applications filed by guarantor and possession by auction purchaser — High Court held that as the guarantor was nota party to the Joint Memo, the decree would not be binding on her; that as sale was not done as per mandate of sale proclamation, the auction was not valid - On appeal, Held: In view of s.128 of Contract Act, liability of the guarantor is co-extensive with that of the principal debtor— Therefore, first respondent cannot escape her liability as a guarantor— The son of first respondent who signed the joint memo and first respondent resided in the same house and therefore there |
Judge | Hon'ble Mr. Justice Pinaki Chandra Ghose |
Neutral Citation | 2015 INSC 363 |
Petitioner | Central Bank Of India |
Respondent | C. L. Vimla & Ors. |
SCR | [2015] 5 S.C.R. 200 |
Judgement Date | 2015-04-28 |
Case Number | 4043 |
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