Dismissed

M/S Vibhuti Trading v. Canara Bank

Karnataka HC11 Mar 2024WP/2282/2024

Case brief

AI extract

What is this about?

The High Court of Karnataka disposed of a writ petition challenging a Section 13(4) notice under the SARFAESI Act. The court held that the petitioners failed to comply with the undertaking to deposit Rs. 2 crores, having paid only Rs. 15 lakhs. Consequently, the interim stay was vacated, and the petition dismissed with leave to pursue other remedies.

What did the court decide?

Petition dismissed. Interim stay vacated. Liberty availed of other legal remedies.

M/S Vibhuti Trading Vs Canara Bank — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:9787 WP No. 2282 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 11^TH DAY OF MARCH, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 2282 OF 2024 (GM-RES)

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BETWEEN:

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M/S VIBHUTI TRADING 4^TH FLOOR, 29/2A, K H ROAD SHANTINAGAR, BENGALURU - 560 027 A SOLE PROPRIETORSHIP FIRM REPRESENTED BY ITS PROPRIETOR MS. SHILPA BASAVARAJ AGED ABOUT 46 YEARS D/O LATE SRI BASAVARAJ

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MS. SHILPA BASAVARAJ D/O LATE SRI BASAVARAJ AGED ABOUT 46 YEARS 29/2A, K H ROAD, SHANTHINAGAR BENGALURU-560027

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Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA

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MRS. HEMALATHA BASAVARAJ W/O LATE BASAVARAJ AGED ABOUT 66 YEARS 29/2A, K H ROAD, SHANTHINAGAR BENGALURU-560027 (SENIOR CITIZEN BENEFIT NOT CLAIMED )

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…PETITIONERS

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(BY SRI. K S PONNAPPA, ADVOCATE)

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AND:

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CANARA BANK CANTONMENT BRANCH NO.86, GROUND FLOOR, SPENCER TOWERS, M.G ROAD, BANGALORE-560001 REP. BY ITS AUTHORISED OFFICER …RESPONDENT

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(BY SRI. T P MUTHANNA, ADVOCATE)

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NC: 2024:KHC:9787 WP No. 2282 of 2024

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER DATED 04/11/2023 BEARING REFERENCE NO.0404/256-9134/SARFAESI 2023 ISSUED BY THE RESPONDENT PRODUCED AT ANNEXURE-A.

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

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ORDER

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The petitioners are before this Court seeking the following

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prayer:

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"A. Issue a writ of certiorari and consequently quash the letter dated 04.11.2023 bearing reference no.0404/256-9134/SARFAESI 2023 issued by the Respondent produced at Annexure - A;

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B. Pass any such orders or direction as this Hon'ble Court deems proper and fit in the interest of justice and equity"

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This Court, showing indulgence to the petitioners

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from time to time had passed the following. On 23.01.2024,

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the following order:

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" Heard the learned counsel for petitioners.

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Sri T.P.Muthanna, learned counsel accepts notice for the respondent – Bank.

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Learned counsel for the petitioner to serve a copy of the petition papers upon Sri T.P.Muthanna, learned counsel for respondent, forthwith.

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Learned counsel for respondent to secure instructions and make his submissions on the next date of hearing.

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NC: 2024:KHC:9787 WP No. 2282 of 2024

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

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Till such time, no precipitative action be taken against the petitioners."

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On 29.01.2024, this Court had directed the Bank

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not to precipitate the matter, subject to the condition that the petitioners would deposit Rs.2 Crores of the overdue amount, within the next date of hearing. The matter was taken up on

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27.02.2024 and the following order was passed:

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" This Court on 23.01.2024, had passed the following order;

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“ Heard the learned counsel for petitioners.

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Sri T.P.Muthanna, learned counsel accepts notice for the respondent – Bank.

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Learned counsel for the petitioner to serve a copy of the petition papers upon Sri T.P.Muthanna, learned counsel for respondent, forthwith.

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Learned counsel for respondent to secure instructions and make his submissions on the next date of hearing.

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

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Till such time, no precipitative action be taken against the petitioners.”

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Again on 29.01.2024, had passed the following order:

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“The respondent shall not precipitate the matter, subject to the condition that the petitioners would deposit Rs.2 crores of the overdue amount within the next date of

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NC: 2024:KHC:9787 WP No. 2282 of 2024

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hearing. Learned counsel for the petitioners, on instructions, would undertake such deposit.

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List the matter on 27.02.2024 in the fresh matters list.”

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The petitioners plead that they have list of properties and the same is already given to the bank. They are also in the process of searching a buyer and therefore, seeks 10 days time to make good the outstanding amount.

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Therefore, as a last chance, list the matter on 11.03.2024, in the fresh matters list.

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In the event, the petitioners do not comply with the order dated 29.01.2024, not only the interim order would stand vacated, the petition itself gets dismissed, without showing any further indulgence.

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With the aforesaid condition, the interim order granted earlier, stands extended till the next date of hearing."

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Not even a rupee had been paid by the borrower by the

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said date.

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When the matter is taken up today, the learned counsel for the respondent - Bank submits that this morning i.e., 11.03.2024, Rs.15 lakhs has been paid by the borrower, notwithstanding the undertaking that Rs.2 Cores would be paid,

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by the next date of hearing.

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NC: 2024:KHC:9787 WP No. 2282 of 2024

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In the light of the breach of the interim order

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granted from time to time, the petitioners do not deserve any indulgence. The petition stands disposed, reserving liberty to

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the petitioners to avail of such remedy, as is available in law.

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The deposit that is made on the strength of the interim order shall be taken as deposit in the event the petitioners would avail any other remedy before any other fora .

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Ordered accordingly.

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Sd/JUDGE

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KG List No.: 1 Sl No.: 34

M/S Vibhuti Trading v. Canara Bank

Case brief

What is this about?

What did the court decide?

M/S Vibhuti Trading v. Canara Bank

Case brief

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