Disposed

Jaswant Singh v. State of U P and 4 Others

Allahabad HC9 Feb 2021WRIC/4248/2021

Case brief

AI extract

What is this about?

The Court disposed of a writ petition challenging an order initiating possession proceedings under the SARFAESI Act. It directed the petitioner to deposit the outstanding dues in installments as fixed by the bank to prevent further proceedings, with the benefit conditional on compliance.

What did the court decide?

Petitioner directed to deposit due amount in installments fixed by the bank to prevent further proceedings; benefit conditional on compliance.

Jaswant Singh Vs State of U P and 4 Others — Banking and Recovery | Allahabad HC (2021)

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Court No. - 39 Case :- WRIT - C No. - 4248 of 2021 Petitioner :- Jaswant Singh Respondent :- State Of U P And 4 Others Counsel for Petitioner :- Ram Chandra Counsel for Respondent :- C.S.C.,Habib Ahmad

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Hon'ble Naheed Ara Moonis,J. Hon'ble Dinesh Pathak,J.

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Heard learned counsel for the petitioner, Sri Habib Ahmad, learned counsel for the respondent no.5 and learned standing counsel for the respondents no.1 to 4.

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The instant writ petition has been filed for following relief:-

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"i. a writ, order or direction in the nature of certiorari quashing the order dated 13.12.20219 (Annexure No.3) passed by respondent no.3.

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ii. a writ, order or direction in the nature of mandamus commanding and directing the respondents not to take any coercive action against the petitioner.

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iii a writ, order or direction in the nature of mandamus directing the respondents to take the amount of Rs.22,25,213/from the petitioner in easy instalments."

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Leaned counsel for the petitioner submits that the petitioner had taken home loan from the respondent no.5 on 19.09.2016. Certain instalments were paid by the petitioner. Later on as the petitioner defaulted to deposit instalments hence his account was declared as NPA pursuant to which proceedings under Section 13 (2) and 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was initiated against him. Now respondent no.3, Additional District Magistrate (Finance and Revenue) Agra has passed an order on 13.12.2019 under Section 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act on the application moved by the Bank for initiating proceedings to take possession of the

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property in question.

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Learned counsel for the respondent no.5-Bank has refuted the submission of learned counsel for the petitioner and submitted that the order dated 13.12.2019 under Section 14 has been passed by the Additional District Magistrate (Finance and Revenue) Agra in a proceeding initiated under Section 13(2) and 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, the "SARFAESI Act"), the petitioner has remedy to approach the Debts Recovery Tribunal under Section 17 of the SARFAESI Act. After the order impugned passed on 13.12.2019, the sale notice was issued on 30.12.2020 of which publication was done on 02.01.2021, however, auction which was to be held on 05.02.2021 could not take place. The bank is interested to recover the money. The petitioner is under legal obligation to pay the outstanding dues. In view of Section 13(8) of the Act, the petitioner is entitled to redeem the secured assets, if he pays the entire due amount before the sale/transfer of the secured assets.

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The said contention raised by the learned counsel for the respondent-Bank has not been disputed. Possession is still lying with the petitioner. The learned counsel for the petitioner submits that the petitioner is ready to deposit the amount in installment.

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We have considered the submissions made at the bar.

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In this view of the matter, if the petitioner deposits the due amount in instalments, as may be fixed by the respondent-Bank by extending benefit of OTS Scheme, further proceeding shall not be initiated against him and in case of any default in payment of installments, the petitioner shall not be entitled to

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the benefit of this order. The bank shall be free to take appropriate action.

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The writ petition is, accordingly, disposed of.

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Order Date :- 9.2.2021

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Asha

Jaswant Singh v. State of U P and 4 Others

Case brief

What is this about?

What did the court decide?

Jaswant Singh v. State of U P and 4 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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