High Court directs Mohali authorities to hand over property under school management to SBI

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The direction was in accordance with an order passed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, in April 2018. (File photo)

The Punjab and Haryana High Court has directed civil and police authorities of Mohali to deliver physical possession of the mortgaged property of Caliber Mexico Education Society in Banur, Mohali, to State Bank of India within 15 days.

The direction was in accordance with an order passed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, in April 2018. The bank authorities had approached the High Court alleging that the district administration had come under pressure of the school management and had failed to implement the High Court’s order.

Earlier, the education society had availed a loan of Rs 750 lakh for construction of a school building, for which it created an equitable mortgage in the form of land in question against it. According to the SBI plea in High Court, the school was constructed over the mortgaged property. The loan was declared a non-performing asset (NPA) in 2016 and accordingly, the proceedings for possession of the property were initiated to recover outstanding dues.

Caliber Mexico Education Society runs the British School in Patiala’s Banur. While the order was passed in April 2018 by the Mohali Additional District Magistrate for handing over the property to SBI, the bank approached high court earlier this year for implementation of the order.

In the plea filed through Advocate Vikas Chatrath, it was submitted that the Naib Tehsildar and other officers have to fail to get the property vacated from borrowers despite the court’s order of April 2018.

“That since, petitioner bank has already exhausted available remedy for taking over the physical possession of the mortgaged property but in vain. Petitioner bank is left with no other remedy except to approach the Hon’ble Court by way of present writ petition,” said SBI in the plea, adding, that the process for recovery of a huge amount from borrowers has been put to a grinding halt as the authorities have kept the order for handing over possession to the bank in abeyance.

The state, in court, submitted that though the date for delivery of actual physical possession was March 25, 2019, because of unavailability of the police force and the recently-concluded Lok Sabha elections, the April 2018 order was not complied with.

[“source=indianexpress”]