Disposed

Budh Ram v. the Hp State Co-Operative Agricultural and Rural Development Bank Ltd. and Another

Himachal Pradesh HC21 Dec 2024CWP/15950/2024

Case brief

AI extract

What is this about?

Writ petition against a bank's public auction notice issued over a defaulted agricultural loan. Court deemed the petition prima facie non-maintainable but, as petitioner agreed to pay the full loan amount with interest and the bank would cancel the auction on receipt, disposed of it directing deposit of Rs. 5 lakhs by 23.12.2024 and the balance by 30.12.2024.

What did the court decide?

Petition disposed with directions to deposit Rs. 5 lakhs by 23.12.2024 and balance by 30.12.2024; auction notice not to be given effect on payment.

Budh Ram Vs the Hp State Co-Operative… — Banking and Recovery | Himachal Pradesh HC (2024)

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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

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CWP No.15950 of 2024 Date of Decision: 21.12.2024

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Budh Ram

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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. Rakesh Chaudhary and Mr. Panku Chaudhary, Advocates. For the respondents: Mr. Raman Sharma, Advocate vice Mr. Narender Singh, Advocate.

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Sandeep Sharma, J. (Oral)

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Being aggrieved with issuance of public notice (Annexure P-1 Colly.) , 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 writ thereby deferred the Public Auction proceeding dated 21.12.2024 till the petitioner arrange money by borrowing it from his near relatives and further quashing and set aside the impugned notice of public auction proceedings Annexure P-1 (Colly.), further directing the Respondent Bank to consider the case of the petitioner for One Time Settlement of

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the loan and the respondents are further directed to place on record the One Time Settlement Policy.

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ii) Respondents be directed to settle accounts with the petitioner and to allow petitioner reasonable time and installments to repay the amount fond due after account settlement.

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iii) Respondents be directed not to take coercive steps to recover the outstanding loan amount and the sale process initiated vide annexure may kindly be stayed/deferred till the time the case of petitioner is not decided and justice be done.”

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While putting in appearance on behalf of the respondents,

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Mr. Raman Sharma, Advocate vice Mr. Narender Thakur, 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. 5.00 lakhs by 23.12.2024 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

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it fit to dispose of the present petition with a direction to the petitioner to deposit sum of Rs. 5.00 lakhs by 23.12.2024 and remaining amount within one week i.e. on or before 30.12.2024 and in that event, notice of public auction (Annexure P-1 Colly. ) shall not be given effect to. Ordered accordingly. Needless to say, in the event of non-payment 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 Colly.) . Pending applications, if any, stand disposed of.

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December 21, 2024 manjit

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(Sandeep Sharma), Judge

Budh Ram v. the Hp State Co-Operative Agricultural and Rural Development Bank Ltd. and Another

Case brief

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Budh Ram v. the Hp State Co-Operative Agricultural and Rural Development Bank Ltd. and Another

Case brief

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