Petitioners sought quashing of a bank possession notice on their NPA loan and time to regularize dues. Having previously been directed to pay within six weeks, they filed an undertaking to clear dues; the Court quashed the impugned notice and granted five months, failing which the bank may act in accordance with law.
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NC: 2024:KHC:11571 WP No. 1623 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 20TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 1623 OF 2024 (GM-RES)
BETWEEN:
…PETITIONERS
Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA
(BY SRI. DAYALU K N., ADVOCATE)
AND:
NC: 2024:KHC:11571 WP No. 1623 of 2024
NO.40, 1ST FLOOR, WARD NO.15, BHUVANESHWARINAGAR, T.DASARAHALLI, BANGALORE – 560 057. REPRESENTED BY ITS MANAGER.
…RESPONDENTS
(BY SRI.K.V.LOKESH, ADVOCATE)
THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE POSSESSION NOTICE DATED 13.10.2023 BEARING REF.NO.TGMCB/SEC/75/2023-24 THAT IS ANNEXURE - H ISSUED BY THE R1 TO THE WRIT PETITION AND ETC.,
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner is before this Court seeking the following
prayer:
(i) to issue writ or writs in the nature of certiorari quashing the possession notice dated 13.10.2023 bearing Ref. No.TGMCB/SEC/75/2023-24, that is, Annexure 'H' issued by respondent No.1 to the writ petition;
(ii) issue writ or writs in the nature of writ of mandamus directing the respondent/Bank to regularize the loan account bearing loan account No.30303608138 of the petitioners according
NC: 2024:KHC:11571 WP No. 1623 of 2024
opportunity to repay the defaulted accrued loan amount and to discharge from NPA;
(iii) and prays for such other relief or reliefs as this Hon'ble Court deems fit in the circumstances of the case, including the costs of the above writ petition, in the interest of justice and equity.
account within six weeks, failing which the impugned coercive proceedings would revive and bank can take all steps for the recovery, in accordance with law. The order reads as follows:
" The challenge is to the coercive recovery proceedings of loan as provided under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Counsel for the petitioners submits that in terms of interim order dated 16.11.2022 granted by a Coordinate Bench of this court, the amount has been deposited, the last extension having been granted by another order dated 31.10.2023.
NC: 2024:KHC:11571 WP No. 1623 of 2024
followed and there is no reason for not following it in this case.
In view of the above, the petition is disposed off directing the respondent-bank to consider leniently the request of petitioners for the regularization of subject NPA Account if petitioners come forward to make the requisite payment therefore within a period of six weeks, failing which the impugned coercive proceedings would revive and bank can take all steps for the recovery, in accordance with law.
Costs made easy. "
that the amount in due as on date for regularization is Rs.1.6 crores. Learned counsel for the petitioner submits that it is lesser than the said amount. The petitioner has filed an affidavit of undertaking that he would clear the entire dues for the purpose of regularization within six months from today. This is objected to by the counsel Sri K V Lokesh. Therefore, to resolve the dispute it would be appropriate to grant five months time to the petitioner
from today to clear the dues for regularization of the account, which
the learned counsel for the respondent submits would become Rs.2.06 crores as on that day, quoting the EMIs together for the period of those five months.
ORDER
(i) The writ petition is disposed of. The impugned notice
stands quashed. The petitioner is directed to abide by the undertaking given in the affidavit and clear the dues within a period of five months from today. In the event the petitioner would fail or breach the undertaking in getting the account regularized in five months from today, it is open for the bank to act in accordance with law, even taking possession of the property.
(ii) It is open for the petitioner to seek any clarification with amount and the bank to clarify those doubts of the petitioner. It is
NC: 2024:KHC:11571 WP No. 1623 of 2024
needless to observe that the consequences of very regularization
of the account of the petitioner shall flow after such regularization.
Sd/JUDGE
YKL List No.: 1 Sl No.: 12
1 issue framed by the court
Whether the possession notice issued by the bank should be quashed and the petitioners given further time to regularize the NPA loan account.
1 provisions across 1 enactments
Maresh V
Jayalakshmi M
Tumkur Grain Merchants Co-operative Bank Ltd.
Tumkur Grain Merchants Co-operative Bank Ltd., Hesaraghatta Main Road Branch
M. Nagaprasanna
As recorded by the court registry
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