Partly allowed

Aadarsh Gupta and 2 Others v. State of U.P. and 2 Others

Allahabad HC21 Mar 2018WRIC/10285/2018

Case brief

AI extract

What is this about?

The High Court, in a writ petition under the SARFAESI Act, permitted loan defaulters to deposit a lump sum of Rs. 5 lacs and clear the remaining balance in four installments instead of facing an immediate property auction, subject to strict timelines.

What did the court decide?

Petitioners permitted to deposit Rs. 5 lacs pending auction; balance payable in four installments with liberty to withdraw if default occurs.

Aadarsh Gupta and 2 Others Vs State of U.P. and 2… — Banking and Recovery | Allahabad HC (2018)

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Court No. - 21

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Case :- WRIT - C No. - 10285 of 2018

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Petitioner :- Aadarsh Gupta And 2 Others Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Ashok Kumar Singh Yadav Counsel for Respondent :- C.S.C.,Sanjai Singh

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Hon'ble Krishna Murari,J. Hon'ble Ajay Bhanot,J.

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Heard Sri Ashok Kumar Singh Yadav, learned counsel for the petitioners, Sri Sanjai Singh, learned counsel for the respondent-Bank and learned standing counsel for the Staterespondent.

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Petitioners admittedly availed facility of loan from respondent no. 3-Bank committed default in re-payment resulting in initiation of proceedings against them under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 by the Bank for recovery of its outstanding dues. After following the procedure prescribed under Section 13 of the Act, the Bank has issued a notice dated 21.02.2018 for auction sale of hypothecated property fixing 28.03.2018 as the date.

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Learned counsel for the petitioners, at the very outset, contends that instead of contesting the matter on merits petitioners are ready and willing to liquidate the entire outstanding and looking to the stringent financial condition, they may be permitted to do so in instalments.

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Learned counsel for the respondent-Bank has no objection to the prayer being granted. He, however, points out that the total outstanding against the petitioners is to the tune of Rs. 32,50,000/-.

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Considering the facts and circumstances of the case, we dispose of the writ petition by providing that in case petitioners deposit a sum of Rs. 5 Lacs to the respondent-Bank on or before the date of auction, the same shall be kept in abeyance. Thereafter, the petitioners shall have a liberty to deposit the remaining outstanding balance in four equal installments. The first instalment shall be deposited on or before 28.03.2018, the second instalment shall be deposited on or before 28.06.2018, the third instalment shall be deposited on or before 28.09.2018 and the fourth and last instalment shall be deposited on or before 28.03.2019. After depositing the third instalment, Bank shall supply a statement of account calculating up to date

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interest to the petitioners, which they shall be liable to pay along with the last instalment.

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In case of default, this order shall stand automatically vacated and the respondent-Bank shall be at liberty to proceed to recover the amount in accordance with law.

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Order Date :- 21.3.2018 S.K.

Aadarsh Gupta and 2 Others v. State of U.P. and 2 Others

Case brief

What is this about?

What did the court decide?

Aadarsh Gupta and 2 Others v. State of U.P. and 2 Others

Case brief

What is this about?

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What the court decided

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