Partly allowed

Shiksha Prasar Samitee, Beni Madhav Chavan Ji Maharaj Maha Vidyalaya Degree College and Another v. State of U.P. and 02 Others

Allahabad HC29 Nov 2019WRIC/39089/2019

Case brief

AI extract

What is this about?

This order suspended coercive action under the SARFAESI Act against petitioners who defaulted on a bank loan. The court directed payment of a first installment of Rs. 5 lakhs within a month, with the balance payable in 11 equal monthly installments, provided there is no further default.

What did the court decide?

Stay of coercive action under the SARFAESI Act; Direction to deposit Rs. 5 lakhs from 31.12.2019 and balance in 11 equal monthly installments.

Shiksha Prasar Samitee, Beni Madhav Chavan Ji… — Execution and Attachment | Allahabad HC (2019)

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Court No. - 4

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Case :- WRIT - C No. - 39089 of 2019

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Petitioner :- Shiksha Prasar Samitee, Beni Madhav Chavan Ji Maharaj Maha Vidyalaya Degree College And Another Respondent :- State Of U.P. And 02 Others Counsel for Petitioner :- Sudhanshu Pratap Singh Counsel for Respondent :- C.S.C.,Ravindra Nath

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Hon'ble Bala Krishna Narayana,J. Hon'ble Rohit Ranjan Agarwal,J.

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Heard learned counsel for the petitioners, learned Standing counsel for the respondent nos. 1 and 2 and Sri Ravindra Nath, learned counsel appearing for the respondent no. 3.

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It appears that the petitioners had obtained a loan of Rs. 25,14,163/- in the year 2016 from the respondent no. 3, Punjab & Sind Bank for the construction of building. Since the petitioners had committed default in the repayment of the loan, proceedings under Section 14 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "Act") were initiated against them before the District Magistrate Kanpur Dehat and registered as Case No. 00275 of 2019 by order dated 18.07.2019 passed by the respondent no. 2, Collector/District Magistrate Kanpur Dehat on the application of the respondent no. 3, Punjab & Sind Bank it was ordered that the possession of the petitioners' building which was mortgaged with the respondent no. 3, be delivered to the respondent no. 3.

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Learned counsel for the petitioners has submitted that the petitioners towards the repayment of the loan, have already paid a sum of Rs. 7,32,591/- and they have every intention to repay the balance amount but their current financial condition is not such so as to enable them to deposit the aforesaid amount in one stroke. However, they are ready and willing to deposit the entire amount due against them in such installments as this Hon'ble Court may deem fit and proper.

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Sri Ravindra Nath, learned counsel appearing for the respondent no. 3 has no objection to the aforesaid prayer made by the petitioners' counsel subject to the condition that the entire amount is deposited within one year with interest and other expenses.

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In view of the above, without expressing any opinion on the merits of the case, we dispose of this writ petition with the following directions :

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(i) The petitioners shall deposit a sum of Rs. 5,00,000/- with the respondent no. 3 on or before 31st December, 2019. Till 31st December, 2019, no coercive action shall be taken against the petitioners pursuant to the impugned order dated 18.07.2019.

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(ii) The petitioners shall deposit the balance amount along with upto date interest and other expenses in 11 equal monthly installments payable on or before the 15th day of each month.

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In case the petitioners deposit the installments as per the scheduled indicated hereinabove, recovery proceedings against the petitioners pursuant to the impugned order dated 18.07.2019 shall remain in abeyance.

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In case of default in the payment of any installment, this writ petition shall stand dismissed automatically without any further reference to the Court and the petitioners shall not be entitled to any benefit of this order.

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Order Date :- 29.11.2019

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Shiksha Prasar Samitee, Beni Madhav Chavan Ji Maharaj Maha Vidyalaya Degree College and Another v. State of U.P. and 02 Others

Case brief

What is this about?

What did the court decide?

Shiksha Prasar Samitee, Beni Madhav Chavan Ji Maharaj Maha Vidyalaya Degree College and Another v. State of U.P. and 02 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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