The Allahabad High Court disposed of a writ petition challenging SARFAESI proceedings. Upon the petitioner agreeing to repay dues in installments, the court stayed coercive action pending compliance.
Stay on coercive action if 25% dues are deposited within a month; allowance to pay balance in two bi-monthly installments.
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Neutral Citation No. - 2023:AHC:143316-DB
Court No. - 46 Case :- WRIT - C No. - 21120 of 2023
Petitioner :- M/S Guddu Milk Product Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Anil Kumar Counsel for Respondent :- C.S.C.,Satish Chaturvedi
Hon'ble Ashwani Kumar Mishra,J. Hon'ble Syed Aftab Husain Rizvi,J.
Petitioner is a proprietary concerned and has approached this Court challenging the proceeding initiated by the Bank under the SARFAESI Act only on the ground that the petitioner is willing to pay the entire amount due and payable to the Bank by him.
Sri Pankaj Srivastava has entered appearance on behalf of the respondent State Bank of India and submits that in the event petitioner is willing to repay the entire amount within two bi-monthly installments, the respondent Bank is willing to accept such amount together with interest. He also informs the Court that amount payable by petitioner, as on date, is Rs.11,76,092/-. He also submits that interest on the amount shall be payable for the future periods.
Learned counsel for the petitioner readily accepts the proposal made by the learned counsel for the Bank.
In view of the statement made above, this petition stands disposed of on following terms:-
(i) Petitioner shall deposit 25% of the dues payable to the Bank within a month from today.
(ii) In the event such amount is deposited, the petitioner will be at liberty to pay the balance amount in two bi-monthly installments. No coercive action shall be taken against the petitioner for the above periods subject to its compliance.
In the event such deposits are made, the Bank shall withdraw all coercive steps taken against the petitioner. However, in the event of any failure in complying with the above directions, the interim protection granted against coercive measures shall stand automatically vacated and the Bank shall be at liberty to proceed against the defaulter in accordance with law.
Order Date :- 19.7.2023 SP/-
Digitally signed by :- SANDEEP PAL High Court of Judicature at Allahabad
1 issue framed by the court
Whether the petition for relief against coercive action under the SARFAESI Act requires disposal when the petitioner offers to repay the dues.
1 provisions across 1 enactments
M/S Guddu Milk Product
State Of U.P.
State Bank of India
Ashwani Kumar Mishra
Syed Aftab Husain Rizvi
As recorded by the court registry
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