Disposed

Madan Singh v. the Hp State Cooperative Agriculture and Rural Development Bank Ltd. and Another

Himachal Pradesh HC20 Dec 2024CWP/15753/2024

Case brief

AI extract

What is this about?

In a writ petition, the petitioner challenged the auction of his property for non-repayment of a loan by the State Cooperative Bank. The court observed the petition was prima facie not maintainable but discharged it on oral grounds, directing the petitioner to deposit Rs. 10 lakhs immediately and the balance within a week to prevent the auction.

What did the court decide?

Petitioner directed to deposit Rs. 10 lakhs by 21.12.2024 and the balance within one week to prevent the public auction notice being issued.

Madan Singh Vs the Hp State Cooperative… — Banking and Recovery | Himachal Pradesh HC (2024)

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2024:HHC:15408

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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

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CWP No.15753 of 2024 Date of Decision: 19.12.2024

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_____________________________________________________________________ Madan Singh

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……...Petitioner Versus

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The Himachal Pradesh State Cooperative Agriculture & Rural Development Bank Ltd. & Anr.

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…....Respondents

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Coram

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Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting?

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For the Petitioner: Mr. Vikrant Thakur, Mr. Sutiksham Sharma, Mr. Sushant Vir Singh Thakur and Mr. Shubham Singh Guleria, Advocates.

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For the respondents: Mr. Narender Singh, Advocate.

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Sandeep Sharma, J. (Oral)

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Being aggrieved with issuance of public notice (Annexure

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P-1) , whereby property of the petitioner has been put to auction on account of his having failed to repay the loan, petitioner has approached this Court in the instant proceedings filed under Article 226 of the Constitution of India, praying therein for the following main reliefs:

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“i) Issue an appropriate writ, order, or direction in the nature of mandamus, directing the respondents to allow the petitioner to resolve the outstanding loan through a One Time Settlement (OTS) in accordance with the applicable guidelines. ii) Quash and set aside the auction proceedings (Annexure P-1) initiated by the respondents in respect of the petitioner’s property.

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2024:HHC:15408

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iii) Direct the respondents to provide the petitioner with a reasonable time period to repay the outstanding loan amount under the OTS scheme.

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iv) Direct the respondents refrain from taking possession of the land in question or making any further transactions regarding the property until the final disposal of the petition.”

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While putting in appearance on behalf of the respondents,

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Mr. Narender Thakur, Advocate, states that land proposed to be put to auction vide public notice does not belong to the petitioner, rather same has been purchased by the bank in the year 2021 in open auction, but in case, petitioner is ready and willing to pay the entire loan amount with upto date interest, respondent/Bank may consider the prayer for cancellation of auction. He further states that to show his bonafide, petitioner may be directed to deposit at least Rs. 10.00 lakhs by tomorrow and thereafter remaining amount within one week.

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Though prima facie this Court is of the view that present petition is not maintainable, however, having taken note of the fact that petitioner is ready and willing to pay the entire loan amount with upto date interest, coupled with the fact that respondent/Bank if receives entire loan amount, has no objection in cancelling the public auction, this Court without adverting to the merits of the case deems it fit to dispose of the present petition with a direction to the petitioner to deposit sum of Rs. 10.00 lakhs by tomorrow i.e. 21.12.2024 and remaining amount within one week i.e. on or before 27.12.2024 and in that event, notice of public auction (Annexure P-1) shall not be given

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2024:HHC:15408

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effect to. Ordered accordingly. Needless to say, in the event of nonpayment of amount agreed to be paid, respondent/bank would be at liberty to proceed with the matter in terms of notice of public auction (Annexure P-1) . Pending applications, if any, stand disposed of.

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December 19, 2024 (Sandeep Sharma), manjit Judge

Madan Singh v. the Hp State Cooperative Agriculture and Rural Development Bank Ltd. and Another

Case brief

What is this about?

What did the court decide?

Madan Singh v. the Hp State Cooperative Agriculture and Rural Development Bank Ltd. and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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