Quashed

M/S. Maroo Engineering Associates Pvt. Ltd, through Directors Viz v. the State of Maharashtra, through Dept of Co-Operation and Ors.

Bombay HC16 Jun 2014WP/4680/2014

Case brief

AI extract

What is this about?

The High Court of Bombay quashed an order rejecting a borrower's application under the One Time Settlement Scheme with a bank. The court directed the bank to reconsider the application on merits within six weeks without coercive action.

What did the court decide?

Impugned communication dated 6.1.2014 quashed; matter remanded; Bank to pass order within six weeks; no coercive action during interim.

M/S. Maroo Engineering Associates Pvt. Ltd, through… — Banking and Recovery | Bombay HC (2014)

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WP/4680/2014

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE JURISDICTION

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WRIT PETITION NO. 4680 OF 2014

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M/s Maroo Engineering Associates Pvt. Ltd., Having office at K-11, MIDC Kupwad, Through its Directors viz.,

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Shri Visanji Kheraj Maroo, Age adult, Occ. Business,

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Shri Rasiklal Kheraj Maroo, Age adult, Occ. Business,

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Shri Suresh Kheraj Maroo, Age adult, Occ. Business,

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Shri Raju Manilal Maroo, Age adult, Occ. Business,

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All resident of Sangli, Dist. Sangli.

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..Petitioners

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VERSUS

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The State of Maharashtra, Through the Department of Cooperation, Having office at Mantralaya, Mumbai.

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The Registrar of Cooperative Societies, Having office at Pune.

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The Ashta Peoples Cooperative Bank Ltd., Ashta, through its Chairman, having Head office at Ashta, Tal.Walawa, District Sangli.

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4.The Branch Manager, The Ashta Peoples Cooperative Bank Ltd., Ashta, Branch at Ambedkar Road, Sangli, Tal. Miraj, District Sangli.

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The Chief Officer, Urban Bank's Division, Having office at Reserve Bank of India, Garment House, Dr. Annie Besant Road, Worli, Mumbai 400 018.

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The Reserve Bank of India,

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WP/4680/2014

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Having office at Mint Road, Fort, Mumbai.

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Smt. Maniben Manilal Maroo, Age adult, Occ. Business

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Shri Ketan Manilal Maro, Age adult, Occ. Business,

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Shri Rajiv Manilal Maroo, Nos. 7 to 9, R/o 1435, Lale Plots, Madhav Nagar Road, Sangli, Tal. Miraji, District Sangli.

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..Respondents

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Mr.P.M.Arjanwadkar, Advocate for the petitioner, Ms. M.S.Bane, “B” Panel AGP for respondents 1 and 2 and Mr. A.B.Vagyani, Advocate for respondents 3 and 4.

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CORAM : NARESH H.PATIL AND RAVINDRA V. GHUGE, J.

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Dated : June 16, 2014

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JUDGMENT: (Per NARESH H.PATIL,J.) :-

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Heard.

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Rule.

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By consent, Rule is made returnable forthwith and the petition is taken up for final disposal.

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The petitioner is the borrower of Ashta Peoples Cooperative Bank. The petition has borrowed an amount of more than Rs. One Crore. Consequent to the default committed by the petitioner in

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WP/4680/2014

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repayment of the said loan, notice under Section 32 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was issued by the Bank to the petitioner The date of notice is 26.2.2014. The petitioner replied to the said notice on 22.3.2014. The petitioner claims to have filed an application under the One Time Settlement Scheme (hereinafter“OTS” for the sake of brevity) on 1.11.2014. By the communication dated 6.1.2014, the respondent Bank rejected the said application. The petitioner is aggrieved by the said communication.

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Learned counsel appearing for the Bank has placed on record the Government Resolution dated 25.9.2013.

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The parties are disputing on the issue as to whether the petitioner's application is maintainable under the OTS Scheme?

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We have perused the order passed by the Bank rejecting application filed by the petitioner for OTS under the scheme.

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After considering the entire record placed before this Court and in view of the submissions advanced, we are of the view that the respondent Bank shall consider the application of the petitioner afresh on its own merits and pass a reasoned order after hearing the petitioner.

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The impugned communication dated 6.1.2014 stands quashed and set aside. The matter is remanded back to the instant Designated Officer. Without expressing any opinion on the claim made by the petitioner, we direct the respondent Bank to pass appropriate orders on the application filed by the petitioner under the OTS Scheme within six weeks from today. The decision of the Bank shall be communicated to the petitioner.

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