Dismissed

Madhab Ch Kalita v. the Assam Financial Corporation and 2 Ors.

Gauhati HC9 Sept 2022WP(C)/5351/2022

Case brief

AI extract

What is this about?

The petitioner, a loan defaulter with the Assam Financial Corporation, filed a writ petition seeking quashing of an auction notice pending a one-time settlement. The Court held that since the petitioner failed to deposit the agreed amount, the settlement was rescinded, and there is no scope for judicial interference in the statutory recovery process.

What did the court decide?

The writ petition is dismissed as there is no merit due to the non-performance of the settlement terms by the petitioner.

Madhab Ch Kalita Vs the Assam Financial… — Contract and Commercial Disputes | Gauhati HC (2022)

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Page No.# 1/3

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GAHC010161392022

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THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

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Case No. : WP(C)/5351/2022

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MADHAB CH KALITA S/O. LT. PUNASWER KALITA, VILL. PURANIMATI SATRA, P.O. PANICHAKUA, DIST. JORHAT, ASSAM.

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VERSUS

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THE ASSAM FINANCIAL CORPORATION AND 2 ORS REP. BY ITS MANAGING DIRECTOR, HAVING ITS HEAD OFFICE AT VITTIYA BHAWAN, MD. SHAH ROAD, PALTANBAZAR, GUWAHATI-781008, KAMRUP (M), ASSAM.

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2:THE MANAGING DIRECTOR

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ASSAM FINANCIAL CORPORATION HAVING ITS HEAD OFFICE AT VITTIYA BHAWAN MD. SHAH ROAD PALTANBAZAR GUWAHATI-781008 KAMRUP (M) ASSAM.

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3:THE SENIOR BRANCH MANAGER

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JORHAT BRANCH ASSAM FINANCIAL CORPORATION MALOW ALI NEAR TELEPHONE EXCHANGE JORHAT 785001

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Advocate for the Petitioner : MR. R PHUKAN

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Advocate for the Respondent : MR. S BORA

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BEFORE HONOURABLE MR. JUSTICE SUMAN SHYAM

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ORDER

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Date : 09-09-2022

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Heard Mr. R. Phukan, learned counsel for the writ petitioner. Also heard Mr. S. Bora, learned standing counsel, AFC, i.e. the respondents herein.

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The petitioner is a defaulter in respect of financial loan obtained from the Assam Financial Corporation (AFC). For making recovery of the outstanding dues, by initiating a proceeding under Section 29 of the Assam Financial Corporation Act, 1951, the AFC had issued a notice for auction sale of the petitioner’s property fixing 13-09-2022. At that stage, the petitioner has approached this Court by filing this writ petition, inter alia, contending that due to some unforeseen circumstances the petitioner could not repay the loan. However, he is willing to make an offer for one time settlement of the loan if the respondent Corporation sit across the table for working out an amicable settlement of the dispute.

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Taking note of the submission of the petitioner’s counsel, this Court had passed order dated 13-08-2022 directing the parties to sit across the table to explore the possibility of amicable settlement of the dispute pertaining to the loan account. Accordingly, officials of the respondent Corporation had meet the petitioner on 31-082022 and arrived at certain decisions, according to which, the petitioner was required to

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deposit 1/3^rd of the outstanding dues amounting to Rs. 27,00,000/- with the Corporation within 07-09-2022, pursuant whereto, the auction sale process will be kept in abeyance.

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Mr. Bora, learned standing counsel, AFC has produced a copy of the minutes of the meeting held on 31-08-2022 which contains 05 (five) points of agreement entered by and between the parties. However, the learned departmental counsel submits that no amount has been deposited by the petitioner till today. Hence, the mutual agreement arrived at on 31-08-2022 automatically stood rescinded.

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The said submission of the respondent’s counsel could not be denied or disputed by the petitioner’s counsel. If that be so, this Court is of the opinion that there is no scope to interfere with the process initiated by the Corporation under Section 29 of the Assam Financial Corporation Act, 1951 in exercise of writ jurisdiction. In other words, the writ Court cannot come in the way of the Corporation from recovering its dues in accordance with law.

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In view of the above, it is held that there is no merit in this writ petition and the same is accordingly dismissed.

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JUDGE

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Comparing Assistant

Madhab Ch Kalita v. the Assam Financial Corporation and 2 Ors.

Case brief

What is this about?

What did the court decide?

Madhab Ch Kalita v. the Assam Financial Corporation and 2 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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