Disposed

Mr. Deepak Raj v. Axis Bank Ltd.

Karnataka HC23 Aug 2024WP/19104/2024

Case brief

AI extract

What is this about?

Borrower challenged the Section 14 SARFAESI order allowing the bank to dispossess him from the secured asset. Having partially deposited amounts as directed earlier and offering to regularize the loan or close it under OTS, he was given liberty to submit a proposal within four weeks for the bank to consider; no precipitative action until then.

What did the court decide?

Liberty to submit regularization/OTS proposal within four weeks; bank not to take precipitative action until considered.

Mr. Deepak Raj Vs Axis Bank Ltd. — Banking and Recovery | Karnataka HC (2024)

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1 - NC: 2024:KHC:33940 WP No. 19104 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 23^RD DAY OF AUGUST, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 19104 OF 2024 (GM-RES)

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BETWEEN:

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MR. DEEPAK RAJ, S/O RAJENDRANATH S, AGED ABOUT 36 YEARS, R/AT NO.25-16-1059/1, 3^RD CROSS, SOUTERPETA, NEAR CHAMUNDESHWARI WORKS, MANGALURU-575002,

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ALSO AT: PROPRIETOR, VINAYAKA ENTERPRISES, SOUTERPETA, 3^RD CROSS, KANAKANDY, MANGALURU-575002.

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…PETITIONER

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(BY SRI RAJASHEKAR S, ADVOCATE)

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AND:

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

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AXIS BANK LTD., A SCHEDULED BANK, WITHIN THE MEANING OF BANKING REGULATION ACT 1948 AND CARRYING ON BUSINESS INTERALIA HAVING ITS OFFICE AT EASEL TOWER, NEAR BUST HOSTEL CERAL, MANGALURU-575003 REPRESENTED BY AUTHORISED OFFICER/MANAGER MR MALLIKARJUN, S/O GOUDAPPA HADAGALI, AGED ABOUT 35 YEARS.

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…RESPONDENT

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(BY SRI FRANCIS XAVIER, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO

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2 - NC: 2024:KHC:33940 WP No. 19104 of 2024

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QUASH THE IMPUGNED ORDER DTD 6.05.2022 AND 15.06.2024 PASSED IN CRL MISC NO. 117/2022 PASSED BY THE PRL SENIOR CIVIL JUDGE AND CJM MANGALURU AND ALSO THE IMPUGNED VACATE NOTICE DTD 11.07.2024 ISSUED BY THE RESPONDENT BANK VIDE ANNX-A AND B. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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The petitioner challenges the order passed under Section 14 of the SARFAESI Act, which permitted the respondent Bank to dispossess the petitioner from the secured asset belonging to them, due to default in loan repayment.

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By order dated 19.07.2024, this Court granted an interim order subject to the petitioner depositing a sum of Rs.3.00 lakhs with the respondent Bank on or before 22.08.2024.

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The petitioner has partially complied with the order dated 19.07.2024 by depositing Rs.2,51,000/-. An additional amount of Rs.50,000/- was credited to another closed loan account. The petitioner is willing to regularize the loan account or, alternatively, close the loan account under the One Time Settlement (OTS) scheme.

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3 - NC: 2024:KHC:33940 WP No. 19104 of 2024

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Therefore, it is expedient to dispose of the petition, granting the petitioner liberty to submit a proposal either for the regularization of the loan account or for its closure under the OTS scheme with the respondent Bank. If such a proposal is submitted by the petitioner within four weeks, the respondent Bank shall consider it in accordance with the existing regulations.

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Until the proposal is considered, the respondent Bank shall not take any precipitative action against the petitioner. Should the loan account be regularized or closed under the OTS scheme, the impugned order under Section 14 of the SARFAESI Act will become unenforceable.

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Pending I.As., if any, do not survive for consideration in view of the disposal of the main matter.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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VGR

Mr. Deepak Raj v. Axis Bank Ltd.

Case brief

What is this about?

What did the court decide?

Mr. Deepak Raj v. Axis Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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