Disposed

Mr Shivanna a P v. Tumkur Grain Merchants

Karnataka HC27 Nov 2023WP/22739/2022

Case brief

AI extract

What is this about?

The High Court of Karnataka disposed of a writ petition by directing the respondent bank to regularize the petitioners' account if they pay the requisite sum within six weeks, otherwise reviving coercive recovery proceedings.

What did the court decide?

The writ petition was disposed of; the respondent bank is directed to regularize the account if the petitioners pay the requisite sum within six weeks, otherwise coercive recovery proceedings revert.

Mr Shivanna a P Vs Tumkur Grain Merchants — Banking and Recovery | Karnataka HC (2023)

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1 - NC: 2023:KHC:42612 WP No. 22739 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 27^TH DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE KRISHNA S DIXIT

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WRIT PETITION NO.22739 OF 2022 (GM-RES)

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BETWEEN:

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MR. SHIVANNA A P, S/O. LATE PUTTASWAMY GOWDA, AGED 42 YEARS, RESIDING AT NO.44, ANAJAWADI KASABA HOBLI, KANAKAPURA TALUK, RAMANAGARA DISTRICT - 562 117.

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Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA

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MR. VEERABHADREGOWDA A P, S/O. LATE PUTTASWAMY GOWDA, AGED 44 YEARS, RESIDING AT NO.44, ANAJAWADI KASABA HOBLI, KANAKAPURA TALUK, RAMANAGARA DISTRICT - 562 117.

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…PETITIONERS (BY SMT. SANDHYA U. PRABHU, ADVOCATE)

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AND:

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TUMKUR GRAIN MERCHANTS CO-OPERATIVE BANK LTD., REPRESENTED BY ITS AUTHORIZED OFFICER/MANAGER, REGISTERED UNDER CO-OPERATIVE SOCIETIES ACT, ADMIN OFFICE, B H ROAD, TUMKUR - 572 103. …RESPONDENT (BY SRI. K.V. LOKESH, ADVOCATE)

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2 - NC: 2023:KHC:42612 WP No. 22739 of 2022

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE POSSESSION NOTICE DATED 06.03.2020 ISSUED BY RESPONDENT BANK BEARING NO.TGMCB/SEC/PN/41/2019-20 PRODUCED AT ANNEXURE-C AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The challenge is to the coercive proceedings of

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recovery. Some reprieve was granted by this Court vide order dated 14.07.2023 and it was continued later with arguably some modification.

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Both the counsel appearing for the parties after arguing the matter for some time fairly submits that some arrangement for granting reprieve/regularization in respect of bank account in question can be considered in accordance with extant policy of RBI guidelines. In fact, the learned panel counsel appearing for the Bank standing tall & fair submits that if the requisite amount is paid, the account in question can be regularized, provided that the Court prescribes a specific time line for making such payment. With this proposal, the learned counsel for the

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3 - NC: 2023:KHC:42612 WP No. 22739 of 2022

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borrowers is also agreeable. Therefore, nothing more survives for consideration.

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In the above circumstances, this Writ petition is disposed off, requesting the respondent-Bank to regularize the account in question as is undertaken before this Court, should the petitioners make payment of the requisite sum in that connection within a period of six weeks; half of that be paid in the first three weeks and the remainder in the weeks next following, failing which the impugned coercive proceedings shall stand revived and that the Respondentbank can take all action for the recovery of outstanding debts.

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This order shall not come in the way of Bank considering the request of the petitioners for restructuring of the loan itself, if it is in accordance with the extant guidelines.

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Ordered accordingly.

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ABK

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Sd/JUDGE

Mr Shivanna a P v. Tumkur Grain Merchants

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Mr Shivanna a P v. Tumkur Grain Merchants

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