Partly allowed

M/S Khatu Shyamji Distributors Agra v. I.D.B.I. Bank Ltd. and 2 Others

Allahabad HC27 Mar 2018WRIC/2119/2018

Case brief

AI extract

What is this about?

Writ petition challenging recovery proceedings under SARFAESI Act. Court permitted petitioner to clear outstanding balance in four quarterly instalments. Recovery proceedings kept in abeyance pending compliance.

What did the court decide?

Outstanding balance and interest to be paid in four quarterly instalments by specified dates. Recovery proceedings stayed for one month.

M/S Khatu Shyamji Distributors Agra Vs I.D.B.I… — Execution and Attachment | Allahabad HC (2018)

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Court No. - 21

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Case :- WRIT - C No. - 2119 of 2018

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Petitioner :- M/S Khatu Shyamji Distributors Agra Respondent :- I.D.B.I. Bank Ltd. And 2 Others Counsel for Petitioner :- Shashank Shekhar,Sheo Ram Singh Counsel for Respondent :- Sunil Kumar Srivastava,C.S.C.

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

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Supplementary affidavit filed today is taken on record.

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Heard Sri Shashank Shekhar, learned counsel for the petitioner and Sri Sunil Kumar Srivastava, learned counsel for the respondent bank.

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petitioner, which is a partnership firm availed cash credit facility to the tune of Rs.120 lacs from the respondent bank in the year 2015. Admittedly there was a default in repayment of the loan, which resulted in proceeding under the SARFAESI Act, 2002 by the bank. The notice under section 13(2) of the Act 2002 was issued on 2.5.2017. Subsequently, notice under section 13(4) of the Act was also issued and since the petitioner failed to deposit the outstanding amount within the stipulated period, the bank initiated proceedings under section 14 of the Act seeking permission and assistance of the District Magistrate to take over physical possession of the secured assets. At this stage the petitioner has approached this court by filing instant writ petition.

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Learned counsel for the petitioner submits that instead of contesting the proceedings on merits the petitioner is ready and willing to repay the entire outstanding amount provided he is permitted to do so in instalments on account of financial crunch and the heavy amount involved. In order to establish his bona fides, learned counsel for the petitioner has taken us through annexures 4 to the supplementary affidavit filed today, which is actually transactions inquiry issued by the bank in respect of loan account. A perusal of the same goes to show that between the period 15.3.2018 till 23.3.2018 petitioner has deposited almost Rs.45 lacs and thus the total outstanding balance, which was Rs.1,10,43,117/- on 1.10.2017 has come down to

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Rs.74,10,966/- as on 23.3.2018.

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A perusal of the same goes to show that bona fide of the petitioner is clear and he is interested in making repayment.

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Learned counsel for the respondent bank has also no serious objection to the outstanding amount being deposited in instalments. Considering the facts, we dispose of the writ petition by providing that the outstanding balance of Rs.74,10,966/- along-with upto actual interest may be deposited by the petitioner in four quarterly instalments of 3 months each. The first instalment may be paid on 1.5.2018, similarly the second instalment may be deposited on 1.8.2018, third instalment shall be deposited on 1.11.2018 and the fourth and the final instalment on 1.2.2019.

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After deposit of the third instalments the bank shall supply details of the interest, which might have accrued during this period which shall be deposited by the petitioner along-with the last instalments. The recovery proceeding under the Securitisation Act initially shall be kept in abeyance for a period of one month from today and in case petitioner deposits the instalments the proceeding shall remain in abeyance. In case the petitioner deposits the entire amount in the aforesaid time the recovery proceedings shall be dropped.

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However, in case of default this order shall automatically lose its efficacy and it shall be open to the bank to proceed against the petitioner, in accordance with law.

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Order Date :- 27.3.2018 Pramod

M/S Khatu Shyamji Distributors Agra v. I.D.B.I. Bank Ltd. and 2 Others

Case brief

What is this about?

What did the court decide?

M/S Khatu Shyamji Distributors Agra v. I.D.B.I. Bank Ltd. and 2 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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