Disposed

R Jagadeesh v. Tumkur Grain Merchants

Karnataka HC12 Dec 2023WP/4388/2023

Case brief

AI extract

What is this about?

High Court bench granted an interim order keeping coercive loan recovery proceedings under SARFAESI Act in hibernation. The court directed the petitioners to approach the bank with a settlement proposal within three weeks, and the bank to consider it within four weeks per RBI guidelines, before a final outcome.

What did the court decide?

Coercive loan recovery proceedings kept in hibernation pending settlement; petitioners directed to approach bank with proposal within 3 weeks and bank to respond within 4 weeks.

R Jagadeesh Vs Tumkur Grain Merchants — Company and Corporate | Karnataka HC (2023)

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1 - NC: 2023:KHC:45071 WP No. 4388 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 12^TH DAY OF DECEMBER, 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. 4388 OF 2023 (GM-RES)

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BETWEEN:

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R JAGADEESH, S/O RAMAIAH N, AGED ABOUT 52 YEARS, # 310, 6^TH MAIN ROAD, MAHALAKSHMI LAYOUT CLUB, MAHALAKSHMI LAYOUT, BENGALURU – 560 086.

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SMT. SHASHIREKHA R. W/O R. JAGADEESH, AGED ABOUT 48 YEARS # 310, 6^TH MAIN ROAD, MAHALAKSHMI LAYOUT CLUB, MAHALAKSHMI LAYOUT, BENGALURU – 560 086. …PETITIONERS

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Digitally signed by SHARADA VANI B

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Location: HIGH COURT OF KARNATAKA

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(BY SRI. D R RAVISHANKAR., SENIOR COUNSEL A/W SRI. ANIL KUMAR R., ADVOCATE)

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AND:

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TUMKUR GRAIN MERCHANTS’ CO-OPERATIVE BANK LIMITED., ADMINISTRATIVE OFFICE, B.H.ROAD, TUMKUR – 572 103. REP BY AUTHORISED OFFICER/MANAGER.

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TUMKUR GRAIN MERCHANTS’ CO-OPERATIVE BANK LTD., RAJAJINAGAR BRANCH, BENGALURU – 560 010. REP BY AUTHORISED OFFICER/MANAGER.

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NC: 2023:KHC:45071 WP No. 4388 of 2023

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THE REGISTRAR OF CO-OPERATIVE SOCIETIES, NO.1, ALI ASKAR ROAD, BENGALURU – 560 052.

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…RESPONDENTS

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(BY SRI. K V LOKESH., ADVOCATE FOR R1 & R2)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE POSSESSION NOTICES BEARING NO.TGMCB/SEC/375/2022-23 DT 17.02.2023, ISSUED TO THE PETITIONERS, PRODUCED AT ANNEXURE-A BEARING NO. TGMCB/SEC/376/2022-23 DT 17.02.2023 ISSUED TO THE PETITIONER NO.1 PRODUCED AT ANNEXURE-B AND BEARING NO. TGMCB/SEC/374/2022-23 DT 17.02.2023 ISSUED TO THE PETITIONERS, PRODUCED AT ANNEXURE-C ISSUED BY THE RESPONDENT NO.1 BANK

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THIS PETITION COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The challenge is to the coercive proceedings of loan recovery instituted under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Learned Sr. Advocate Sri.D.R.Ravishankar appearing for the petitioners submits that pursuant to interim order dated 27.02.2023 granted by the Coordinate Bench, some payments have already been made and that his client would go before the respondent-Bank to negotiate an amicable settlement in

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3 - NC: 2023:KHC:45071 WP No. 4388 of 2023

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accordance with the extant RBI Guidelines so that the NPA

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status can be raised and the loan account can be made functional.

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Learned Sr. Panel Counsel appearing for the respondent-Bank although initially opposed the proposal, now on the request of court, agrees to consider the above proposal of the borrower, in accordance with law and till then, the coercive proceedings shall be kept in the hibernation. This is really appreciable.

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Till all this, petitioners are directed to approach the respondent-Bank with a reasonable proposal for settling the outstanding loans. This they will do within three weeks. The respondent-Bank shall consider the said proposal within four weeks next following, of course in accordance with the extant RBI Guidelines. It shall communicate the result of such consideration to the petitioners by Registered Post. Till all this happens, the

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NC: 2023:KHC:45071 WP No. 4388 of 2023

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subject coercive proceedings of loan recovery are kept in

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hibernation.

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In view of the above, Writ Petition is disposed off.

Costs made easy.

Sd/JUDGE

cbc

List No.: 1 Sl No.: 14

R Jagadeesh v. Tumkur Grain Merchants

Case brief

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R Jagadeesh v. Tumkur Grain Merchants

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