Kochi: The High Court on Tuesday quashed the auction of the landed property of Preetha Shaji at Mannathupadam near Edapally in Ernakulam.
The court has directed M.V. Shaji, husband of Preetha, to provide Rs 43,51,362 to HDFC Bank and Rs 1,89,000 to Ratheesh, who bought the land in auction.
The payment has to be made within a month. Otherwise, the bank can auction the property and recover the amount.
A division bench headed by Chief Justice Rishikesh Roy quashed all other previous orders in connection with the case.
The landmark judgment, a victory for the long-drawn struggle by the housewife with the support of grassroots-level activists, will help in bringing relief to the victims of the Securitisation and Reconstruction of Financial Assets and Enforcement Act (Sarfaesi Act).
The judgment is a great relief, Preetha said. The ordeal of the family had begun with her husband Shaji standing as a guarantor to a friend for a bank loan of '2 lakh from the now defunct Lord Krishna Bank 24 years ago. Shaji’s friend defaulted in the loan repayment and the bank asked Shaji, as the guarantor, to repay the loan. Shaji repaid '1 lakh by selling a portion of the property but couldn’t clear the rest as he fell ill. The merger of Lord Krishna Bank initially with the Centurion Bank and later with the HDFC Bank put the issue on the backburner.
The HDFC Bank approached the Debt Recovery Tribunal for the recovery of the loan and the Kochi office of the DRT ordered the sale of the property for a consideration of '37 lakh triggering an agitation by Ms Preetha.
