Bengaluru: When there is no restriction on the grantee of agriculture Earth Loan availed from any bank for the purpose of agricultural activities, in the event of default in repayment of the said loan, the borrower cannot subsequently raise the bar under section 4 Karnataka Scheduled Castes and Scheduled Tribes Act and the Prohibition of Transfer of Certain Land Act, 1978 (PTCL Act), the property cannot be brought for sale, High Court Recently a decision was held.
judgment in favor of A auction Buyer from Udupi, the court has said that if such a stand is accepted, then any land mortgaged by the grantee belonging to the Scheduled Caste and Scheduled Tribe community cannot be brought up for sale on default in repaying the loan Is.
“It is for this reason that an exception or exemption has been made under Section 7 of the PTCL Act, and in case of any default in repayment of the loan, the Bank may be within its rights to bring the said property to auction . , exercising its mortgage rights “as the court has indicated.”
Justice Suraj Govindraj has indicated in his order.
One Suresh Naik had taken a loan of Rs 2.4 lakh from a local co-operative bank by mortgaging the family property of 2 acres 80 cents, located at Hirbettu village in Udupi taluk. The borrower defaulted and after arbitration proceedings, the land was put up for auction and on 29 September 2005. The petitioner Vijayachandra, a resident of Udupi, emerged as the auction buyer.
Subsequently, in 2010, the sale was confirmed, but the mortgagee’s family challenged it on the ground that the land in question, being a sanctioned land, could not be auctioned and there was a provision of Section 4 of the PTCL Act.
Subsequently, after a series of legal battles, the confirmation of sale order was modified on November 11, 2014 and Vijayachandra challenged it before the High Court.
judgment in favor of A auction Buyer from Udupi, the court has said that if such a stand is accepted, then any land mortgaged by the grantee belonging to the Scheduled Caste and Scheduled Tribe community cannot be brought up for sale on default in repaying the loan Is.
“It is for this reason that an exception or exemption has been made under Section 7 of the PTCL Act, and in case of any default in repayment of the loan, the Bank may be within its rights to bring the said property to auction . , exercising its mortgage rights “as the court has indicated.”
Justice Suraj Govindraj has indicated in his order.
One Suresh Naik had taken a loan of Rs 2.4 lakh from a local co-operative bank by mortgaging the family property of 2 acres 80 cents, located at Hirbettu village in Udupi taluk. The borrower defaulted and after arbitration proceedings, the land was put up for auction and on 29 September 2005. The petitioner Vijayachandra, a resident of Udupi, emerged as the auction buyer.
Subsequently, in 2010, the sale was confirmed, but the mortgagee’s family challenged it on the ground that the land in question, being a sanctioned land, could not be auctioned and there was a provision of Section 4 of the PTCL Act.
Subsequently, after a series of legal battles, the confirmation of sale order was modified on November 11, 2014 and Vijayachandra challenged it before the High Court.