2025:HHC:1658 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.2633 of 2023 Date of Decision: 8.1.2025 _____________________________________________________________ Sahi Ram Chauhan ……...Petitioner Versus The HP State Cooperative Agriculture and Rural Development Bank Ltd. and Anr. …....Respondents Coram Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting? For the Petitioner: Mr. Vinod Thakur, Advocate. For the respondent: Mr. Narender Singh Thakur, Advocate. ___________________________________________________________________________ Sandeep Sharma, J. (Oral) Though petitioner herein had approached this Court in the instant proceedings with a prayer to issue direction to the respondent-Bank to consider his case for settlement of loan under OTS Policy, but on 25.7.2023, this Court having taken note of statement made by the learned counsel for the petitioner that petitioner is ready and willing to make payment of entire outstanding amount to the respondent bank, passed following order: “Learned counsel for the petitioner states that his client is ready and willing to make payment of entire outstanding loan amount to the respondent-Bank. In view of above permission is granted to the petitioner to sell the land comprised in Khasra Nos. 391/188, 415/385, 405/296, 100, 101, 317/160, 375/184, 456/192 and 224 measuring 19-16 Bigha situate in Patwar Circle Tikri Dasakna, 2025:HHC:1658 - 2 - Mohal Kharotia, Tehsil Haripurdhar, District Sirmaur, Himachal Pradesh, however, before the land is put to sale, the petitioner will have to disclose the sale price and also append the copy of the agreement, which may be entered with the prospective buyer.” 2. Before aforesaid order passed by this Court could be taken to its logical end, prayer made by the petitioner for settlement of loan under OTS Scheme came to be considered by the respondent Bank, whereby petitioner agreed to pay sum of Rs. 90,59,600/- by 31.3.2024, but fact remains that entire amount agreed to be paid was never paid and as such, respondent-bank rejected the payer made by the petitioner under OTS Scheme, which otherwise ceased to exist after 30.6.2024. 3. Pursuant to aforesaid development, one application bearing CMP No. 15119 of 2023 came to be filed at the behest of the petitioner, stating therein that petitioner has found a buyer for sale of the land, description whereof, is mentioned in order dated 25.7.2023 and he may be granted permission to sell the remaining land so that he can liquidate the entire liability of the bank. Vide order dated 20.10.2023, this court allowed the application and permitted the petitioner to dispose of the remaining land. 4. It is not in dispute that as of today, petitioner has paid sum of Rs. 63,60,000/- against total liability of Rs. 1,07,12,518/-. Since petitioner has found prospective buyer to purchase his land, which otherwise stands mortgaged with the respondent bank, prayer 2025:HHC:1658 - 3 - has been made by the learned counsel for the petitioner that petitioner may be permitted to sell the remaining land. In support of his aforesaid submissions, petitioner has placed on record agreement to sell executed inter-se petitioner and prospective buyer, whereby the prospective buyer has agreed to buy the land in question for sum of Rs. 45,20,000/-. 5. Having taken note of the aforesaid submission made by learned counsel for the petitioner, this court specifically called upon Mr. Narender Singh Thakur, Advocate, representing the respondent Bank, to have instructions. Pursuant to aforesaid directions issued by this Court, Mr. Thakur has placed on record instructions dated 8.1.2025, issued under the signature of General Manager, H.P. State Cooperative Agriculture & Rural Development Bank Ltd, Kasumpti, which reads as under: “Dear Sir, Sh. Sahi Ram S/o Sh. Jeet Singh R/o Village Tikkari Dakasna PO & Tehsil Haripurdhar, Distt Sirmour had raised a loan of Rs. 50,00,000/- from our Dadahu branch for construction of Hotel in the year 2011. The above borrowers has failed to pay the due loan installments, as a result, his account has become Non Performing Assests (NPA) in the year 2012-13. Now, the above borrower has filed an application before Hon'ble High Court, HP praying therein to direct the Bank to vacate/release a portion of his land mortgaged with the Bank to sell out in order to liquidate the loan amount of the Bank fully. This case is listed for hearing today. In this regard, the Bank has no objection to vacate the land of Sh. Sahi Ram mortgaged with the Bank subject to the condition that the entire outstanding amount, (which has been worked out tentatively 2025:HHC:1658 - 4 - upto 01.01.2025 to the tune of Rs. 43,52,518/-) is paid by Sh. Sahi Ram alongwith up to date interest and other admissible charges. The Bank shall vacate entire his land immediately on the same day of depositing the total outstanding amount in the Bank. You are, therefore, requested to apprise the Hon'ble High Court in this regard accordingly.” 6. Perusal of afore instructions clearly reveals that respondent bank has no objection in selling the land to prospective buyer but subject to condition that entire outstanding amount, which has been worked out tentatively upto 1.1.2025 to the tune of Rs. 43,52,518/-, shall be paid by the petitioner with up-to-date interest alongwith other admissible charges to the respondent bank. As soon as, sale deed is executed pursuant to agreement to sell placed on record, bank shall vacate the entire land. 7. Though this court with a view to protect the interest of respondent-Bank cannot order to remove the entry of mortgage qua the land in question in the revenue record, but certainly with a view to enable the petitioner to sell the property in question, can direct the revenue authorities to execute the sale deed inter-se petitioner and prospective buyer without being influenced by the entry of mortgage made in the revenue record, however, such sale deed shall be executed in the presence of the bank officials, to whom, sum of Rs. 43,52,518/- shall be paid and thereafter, prayer made by the petitioner for deletion of entry of mutation shall be considered so that land free from all encumbrances is mutated in favour of the prospective buyer. Ordered accordingly. Aforesaid permission granted to the petitioner to sell the 2025:HHC:1658 - 5 - property to the prospective buyer shall remain in force till 15.3.2025, whereafter respondent-Bank in the event of failure on the part of the petitioner to take steps, would be entitled to take steps for public auction to recover the outstanding amount. In the aforesaid terms, present petition is disposed of along with pending applications, if any. January 8, 2025 (Sandeep Sharma), manjit Judge