Disposed

Smt. Chandramma N v. Bank of India

Karnataka HC1 Feb 2024WP/1503/2024

Case brief

AI extract

What is this about?

A borrower challenged a sale notice issued by her bank under recovery proceedings, seeking six months to close loan dues. The court took her undertaking to clear dues within six months and directed that possession be restored on payment of Rs.10 lakhs.

What did the court decide?

Petitioner's undertaking to clear dues in six months accepted; possession to be restored upon payment of Rs.10 lakhs.

Smt. Chandramma N Vs Bank of India — Banking and Recovery | Karnataka HC (2024)

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1 - NC: 2024:KHC:4379 WP No. 1503 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 1^ST DAY OF FEBRUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 1503 OF 2024 (GM-RES)

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BETWEEN:

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SMT. CHANDRAMMA N W/O KAMALA KONDAPPA T V AGED ABOUT 66 YEARS R/AT NO 750, 4^TH CROSS ROAD NEAR RTO OFFICE, UPKAR RESIDENCY UPKAR LAYOUT KENGERI BENGALURU - 562 091

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…PETITIONER

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(BY SMT. KAVITHA D., ADVOCATE)

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AND:

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Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA

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BANK OF INDIA (REGISTERED UNDER SECTION 9(3) (b) OF THE BANKING COMPANIES ACT 1970/1980) KORMANGALA BRANCH NO.67, 1^ST FLOOR, JYOTHI NIVASA COLLEGE ROAD, 5^TH BLOCK INDUSTRIAL LAYOUT KORAMANGALA BANGALORE - 560 095 REPRESENTED BY ITS CHIEF MANAGER/BRANCH MANAGER

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…RESPONDENT

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(BY SRI. M MOHAMED IBRAHIM.,ADVOCATE)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) SET ASIDE THE SALE NOTICE DATED 09/01/2024 VIDE ANNEXURE-D ISSUED BY THE RESPONDENT BANK BY STATING THAT THE ENTIRE RECOVERY PROCEEDINGS INITIATED BY THE RESPONDENT BANK AGAINST THE SCHEDULE PROPERTY ARE ILLEGAL AND IN VIOLATION OF THE

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NC: 2024:KHC:4379 WP No. 1503 of 2024

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SARFAESI ACT, 2002; b) ISSUE WRIT OF MANDAMUS TO THE RESPONDENT BANK, NOT TO TAKE ANY FURTHER ACTIONS AGAINST THE SCHEDULE PROPERTY AND TO GRANT A MORATORIUM TIME OF SIX MONTHS TO CLEAR THE ENTIRE DUES.

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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 petitioner is before this Court seeking the following prayer:

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“a) Issue a writ of Certiorari by setting aside the Sale Notice dated 09-01-2024 vide ANNEXURE - D issued by the Respondent Bank by stating that the entire recovery proceedings initiated by the Respondent Bank against the Schedule Property are illegal and in violation of the SARFAESI Act, 2002.

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b) Issue writ of Mandamus to the Respondent Bank, not to take any further actions against the Schedule Property and to grant a moratorium time of six months to clear the Entire Dues.

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c) Issue such other orders or direction/s as may be deemed fit to grant, including cost of the case, in the view of facts and circumstances of this above case in the interest of justice and equity.”

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Heard the learned counsel Smt.Kavitha D., appearing for the petitioner and the learned counsel Sri.M.Mohamed Ibrahim, appearing for the respondent.

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NC: 2024:KHC:4379 WP No. 1503 of 2024

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This Court, on 16.01.2024 entertaining the petition

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had passed the following order:

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" Learned counsel Sri.Mohammed Ibrahim is directed to accept notice for respondent.

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Learned counsel for the petitioner to serve a copy of the petition papers upon the aforesaid counsel, forthwith.

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The petitioner shall deposit 10% of the amount in due to the Bank on or before 28.01.2024.

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List the matter on 29.01.2024 in the fresh matters list."

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The learned counsel for the petitioner submits that the interim order is complied with in its entirety by depositing even more than what was directed by this Court.

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The learned counsel Sri.Mohammed Ibrahim,

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appearing for the respondent – Bank submits that the petitioner is still in due of Rs.90 lakhs apart from what is already paid.

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Learned counsel for the petitioner reiterates the prayer that is sought that the petitioner would close the entire dues within six months.

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NC: 2024:KHC:4379 WP No. 1503 of 2024

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The said reiteration of the prayer is taken as an undertaking from the petitioner. Learned counsel for the petitioner submits that the possession is still with the Bank and

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is not yet been restored to the hands of the petitioner. If that be so, subject to the payment of another Rs.10 lakhs, at any time, the Bank shall immediately on receipt of such amount restore possession in favour of the petitioner. The petitioner shall be bound by the undertaking that is made before this Court that the loan would be closed within six months.

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With the aforesaid observations, the writ petition stands disposed.

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Sd/JUDGE

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List No.: 1 Sl No.: 11

Smt. Chandramma N v. Bank of India

Case brief

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Smt. Chandramma N v. Bank of India

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