Partly allowed

M/S. Yogesh Pharmaceuticals v. Canara Bank

Karnataka HC21 Sept 2023WP/17350/2023

Case brief

AI extract

What is this about?

Petitioners challenged a Debt Recovery Tribunal order dismissing their stay application after a bank issued a possession notice under the SARFAESI Act. The Court granted interim relief, staying possession proceedings pending tribunal consideration, conditional on depositing Rs. 30 lakhs within four weeks.

What did the court decide?

Stay on proceedings pursuant to possession notice and restraint on taking possession, conditional on depositing Rs. 30.00 lakhs within four weeks.

M/S. Yogesh Pharmaceuticals Vs Canara Bank — Execution and Attachment | Karnataka HC (2023)

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NC: 2023:KHC:34184 WP No. 17350 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21^ST DAY OF SEPTEMBER, 2023

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BEFORE

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THE HON’BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.17350 OF 2023 (GM-DRT)

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BETWEEN:

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M/S. YOGESH PHARMACEUTICALS NO.125/3, 1^ST FLOOR, C BLOCK, SRI BALAJI COMPLEX, SULTANPET, BANGALORE – 560 053, REP. BY ITS PROPRIETOR, SMT. SUDHA L.

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SMT. SUDHA .L W/O. SRIKANTH RAJ G.R. PROPRIETRIX M/S. YOGESH PHARMACEUTICALS, AGED ABOUT 52 YEARS, R/AT NO.19, BENAKA NIVAS, 14^TH CROSS, 1^ST MAIN, SRINIDHI LAYOUT, J.P. NAGAR, BENGALURU – 560 062.

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Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA

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SRI SRIKANTH RAJ G.R. S/O. RANGEGOWDA, AGED ABOUT 63 YEARS, R/AT NO.19, BENAKA NIVAS, 14^TH CROSS, 1^ST MAIN, SRINIDHI LAYOUT, J.P. NAGAR, BENGALURU – 560 062. ... PETITIONERS

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(BY MS. GEETA R. SHINDHE, ADVOCATE)

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AND:

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CANARA BANK CHICPET-1 BRANCH, NO.349, KORMARLA TOWERS, 1^ST FLOOR, OTC ROAD, BENGALURU – 560 053, REP. BY ITS CHIEF MANAGER. ... RESPONDENT (BY SRI VIGNESH SHETTY AND MS. NATHASHA N. MURTHY, ADVOCATES)

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2 - NC: 2023:KHC:34184 WP No. 17350 of 2023

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH / SET ASIDE THE ORDER DATED 25/07/2023 IN S.A. 186/2023 ON I.A. NO.1467/2023, PASSED BY DEBT RECOVERY TRIBUNAL, BENGALURU (DRT-II) VIDE ANNEXURE-G; QUASH THE POSSESSION NOTICE DATED 13/07/2023 ISSUED BY THE RESPONDENT PRODUCED AS ANNEXURE-E; DIRECT THE RESPONDENT TO RENEW THE CREDIT FACILITY.

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THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioners in this writ petition are assailing the order dated 25.07.2023 in S.A. No.186/2023 on I.A.No.1467/2023 passed by the Debts Recovery Tribunal, Bengaluru at Annexure-G, whereby, the application filed by the petitioners for stay has been dismissed.

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Heard the learned counsel for the petitioners and learned counsel appearing for the respondentcaveator.

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Smt. Geeta R, learned counsel for the petitioners submits that the respondent-Bank has issued possession notice and the property is the only residential house of the petitioners. Learned counsel for the petitioners submits that the amount demanded in the

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3 - NC: 2023:KHC:34184 WP No. 17350 of 2023

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notice under the SARFAESI Act is exceptionally higher then the real number. Learned counsel would contend that the petitioners intend to regularize the account and on instructions from the petitioners submits that the petitioners are ready to deposit a sum of Rs.30.00 lakhs with the respondent-bank and seeks indulgence of this Court for an issuance of stay of the proceedings pursuant to the possession notice.

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Per contra , learned counsel appearing for the respondent-bank submits that the Debts Recovery Tribunal has rightly dismissed the application filed by the petitioners as the petitioners have not made out a primafacie case for an interim order of stay. Further, learned counsel for the respondent submits that the bank is interested in recovery of the amount due by the petitioners.

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This Court has carefully considered the rival contentions urged by the learned counsel for the parties and perused the material on record.

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4 - NC: 2023:KHC:34184 WP No. 17350 of 2023

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The fact that the petitioners have approached

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the Debts Recovery Tribunal, Bengaluru (DRT-II) in S.A. No.186/2023 is not in dispute. It is also not in dispute that the application filed by the petitioners seeking for interim relief has been rejected by the DRT and pursuant to which, the respondent-bank has issued possession notice. As the petitioners are willing to deposit Rs.30.00 lakhs, this Court feels it appropriate, to grant interim relief. For the foregoing reasons, parties are relegated to the Debts Recovery Tribunal, Bengaluru, however, till consideration of S.A. No.186/2023, proceedings pursuant to the possession notice dated 13.07.2023 vide Annexure-E is stayed and the respondent-bank is restrained from taking possession of the schedule property, subject to the petitioners depositing Rs.30.00 lakhs before the respondent-Bank within a period of four weeks from today.

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Sd/JUDGE

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MBM

M/S. Yogesh Pharmaceuticals v. Canara Bank

Case brief

What is this about?

What did the court decide?

M/S. Yogesh Pharmaceuticals v. Canara Bank

Case brief

What is this about?

What did the court decide?

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