Disposed

Smt S P Madhu v. N K G S B Co. Operative Bank

Karnataka HC7 Feb 2024WP/2674/2024

Case brief

AI extract

What is this about?

Petitioners seeking to quash SARFAESI possession notices filed an undertaking to clear bank dues for their educational institution. The High Court accepted the undertaking but tightened the deadline, requiring full clearance by end of 2024, before disposing of the petition.

What did the court decide?

The writ petition was disposed of by accepting the petitioners' undertaking with modified terms requiring full payment of dues by 31.12.2024.

Smt S P Madhu Vs N K G S B Co. Operative Bank — Education and Admissions | Karnataka HC (2024)

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 7^TH 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. 2674 OF 2024 (GM-RES)

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BETWEEN:

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SMT. S.P. MADHU AGED ABOUT 44 YEARS D/O SRI PARAMESHWARAPPA W/O SRI SATISHI K.N.

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SRI K.N. SATISH AGED ABOUT 48 YEARS S/O SRI.K.A. NAGARAJ R/AT NO. 808, FORT ROAD DODDABALLAPURA BENGALURU RURAL DISTRICT - 561 203.

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…PETITIONERS

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(BY SRI K.S. RAMESH, ADV.)

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AND:

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

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N.K.G.S.B. CO-OPERATIVE BANK REP BYITS GENERAL MANAGER HAVING ITS MAIN REGISTERED OFFICE AT NO.361, V.P ROAD GIRGAON, MUMBAI - 400 004.

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N.K.G.S.B. CO-OPERATIVE BANK REP BY ITS BRNCH MANAGER HAVING ITS BANK PREMISES AT NO.173, O.M. SHELTERS J. LINGAIAH ROAD, 1ST MAIN ROAD SHESHADRIPURAM BENGALURU 560 020.

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…RESPONDENTS

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(BY SRI H.R. SUNIL KUMAR, ADV., FOR R-1 AND R-2)

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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THIS WP IS FILED PRAYING TO QUASH THE ORDER DATED 04/08/2023 PASSED IN CRIMINAL MISC. PETITION NO. 205/2023 BY THE CJM, RURAL COURT, BENGALURU, BENGALURU RURAL WHICH IS PRODUCED AS ANNEXURE-N AND ETC.

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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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1. The petitioners are before this Court, seeking for the following prayer:-

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" WHEREFORE, the petitioners pray that this Hon'ble Court be pleased to pass a judgment and order against the respondents in terms of the following;

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a) Issue a writ of Certiorai or any other writ or order quashing the order dated 4/8/2023 passed in Criminal Misc. Petition No.205/2023 by the CJM, Rural Court, Bengaluru, Bengaluru Rural which is produced as Annexure-'N' and

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b) Issue a writ of certiorari or any other writ or order quashing the possession Notice dated 06/01/2023 issued by respondents under Section 13(2) of the SARFAESI Act 2002 which is produced as Annexure 'L' No.Ref. NKGSB/13(4)/RED-SSW/109MADUSP/2022-23 and

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c) Issue a writ of certiorari or any other writ or order quashing the possession Notice dated 17/01/2023 issued by respondents under

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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Section 13(4) of SARFAESI Act 2002 which is produced as Annexure "M' and

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d) for a direction to the respondents not to interfere with peaceful possession and enjoyment of the petitioners in relation to the writ petition schedule 'A' property wherein the petitioners are running the School and grant any other writ or order or direction as this Hon'ble Court deems fit to do so in the facts circumstances of the above writ petition the ends of justice and equity."

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Heard Sri. K. S. Ramesh, learned counsel for the

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petitioners and Sri. H. R. Sunil Kumar, learned counsel for the respondents.

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Since it was an Educational Institution, this Court did show indulgence to the petitioners for drawing up of a timeline in which the loan would be cleared. The petitioners have filed an affidavit of undertaking indicating the timeline, which reads as under:-

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"JOINT AFFIDAVIT FILED BY PETITIONERS

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We (1) S.P. Madhu aged about 44 years, D/o Sri. Parameshwarappa, W/o Sri. Satish. K.N. and (2)

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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Satish. K.N. aged about 48 years, S/o Sri. K.A. Nagaraj, Both R/at No. 808, Fort Road, Doddaballapura, Bengaluru Rural District -561203 HAVING NOW COME TO BENGALURU do hereby state on oath as follows;

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1) We are the petitioners in the above Writ petition. We know the facts of the case leading to the filing of this joint affidavit.

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2) We submit that the respondent sanctioned the loan amount in a sum of Rs. 1 crore 50 lakhs and from out of the said sanctioned loan amount, the liability of the 2nd of us to the tune of Rs. 78,75,490/- availed by him from other financial institutions came to be discharged by the respondent for and on behalf of the 2nd of us in the above writ petition. Consequently, the loan amount in a sum of Rs. 71,24,510/- came to be credited into the joint Bank Account of us by the 2nd respondent.

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3) We submit that all the repayments made by us so far towards discharge of the loan amount availed by us have been reflected n the statement of Account of the Loan Account Bearing No. 109303600000001.

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4) We submit that till 31/01/2024 we have become EMI Overdue in a sum of Rs. 61 lakhs towards

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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discharge of the loan amount Borrowed by us from the 2nd respondent.

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5) We submit that in so far as the EMI Overdue in a sum of Rs. 61 lakhs is concerned we hereby agree to discharge the aforesaid EMI overdue in a sum of Rs. 61 lakhs every quarter of each year, viz., once in every 3 months in a sum of Rs. 10 lakhs on or before the expiry of 1/05/2024.

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6) We submit that in respect of the 2nd quarter of payment agreed to be made by us towards discharge of the aforesaid remaining Balance EMI Overdue we hereby agree to pay the sum of Rs. 15 lakhs towards discharge of the Balance EMI Overdue on or before the expiry of 01/08/2024.

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7) We submit that in respect of the 3rd quarter of payment agreed to be made by us towards discharge of the remaining Balance EMI Overdue we hereby agree to pay the sum of Rs. 17 lakhs on or before the expiry of 01/11/2024.

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8) We submit that in respect of the 4th quarter of payment agreed to be made by us towards discharge of the remaining Balance EMI Overdue we hereby agree to pay the sum of RS. 19 lakhs on or before the expiry of 31/01/2025.

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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9) We submit that insofar as the EMI for the month of January 2024 is concerned we have already paid a sum of Rs. 2,54,000/- towards discharge of the loan amount availed by us by crediting into the loan Account Bearing No. 109303600000001.

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10) We submit that insofar as the EMI for the month of February 2024 is concerned we have already paid a sum of Rs. 2,53,000/- towards discharge of the loan amount availed by us by crediting into the loan Account Bearing No. 109303600000001.

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11) We further submit that apart from the aforesaid time bound quarterly payments agreed to be paid by us towards discharge of the outstanding EMI Dues to the respondents, insofar as the future EMIS for the months starting from 5/3/2024 is concerned we hereby agree to credit the monthly EMI in a sum of Rs. 2,53,000/- into the loan Account Bearing No. 109303600000001 regularly every month till the end of September 2027, since the period for discharge of the entire loan amount along with interest is agreed to between us and respondents spread over a period of 10 years, viz., 120 months starting from 1/10/2017 to 30/09/2027.

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12) We further submit that the respondent Bank has agreed to the above quarterly mode of payments which are indicated by us in the preceding paras, all

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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of which payments agreed to be paid by us to the respondent Bank would be in full and final satisfaction towards discharge of the entire loan availed by us along with agreed interest.

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Wherefore, we pray that this Hon'ble Court be pleased to dispose of the above writ petition in terms of the joint affidavit filed by us in the ends of justice and equity.

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We, the deponents herein do hereby declare that this is our name and signature and the contents of this joint affidavit are true and correct to the best of our knowledge, information, belief and records.

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1. Sd/2. Sd/Bengaluru Date:05/02/2024 Deponents"

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Learned counsel for the respondents-Bank is

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agreeable to all the conditions except paragraph Nos.5 and

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The said paragraphs are again extracted for the purpose of quick reference:-

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"5) We submit that in so far as the EMI Overdue in a sum of Rs. 61 lakhs is concerned we hereby agree to discharge the aforesaid EMI overdue in a sum of Rs. 61 lakhs every quarter of each year, viz., once in

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8 - NC: 2024:KHC:5145 WP No. 2674 of 2024

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every 3 months in a sum of Rs. 10 lakhs on or before the expiry of 1/05/2024.

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xxx

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The indication at paragraph No.5 is that they would pay certain amount on 01.05.2024. The same is not acceptable to this Court. Petitioners shall clear Rs.25 lakhs on or before 31.03.2024 i.e., by the end of the financial year, and clear entire dues, as is indicated in the affidavit, not on 31.01.2025 but a month earlier i.e., on or before 31.12.2024.

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With the aforesaid observations and recording the undertaking of the petitioners, the petition stands disposed.

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NC: 2024:KHC:5145 WP No. 2674 of 2024

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It is needless to observe that any deviation in the undertaking of payment in the timeline indicated, the respondents-Bank is at liberty to continue the proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

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Ordered accordingly.

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Sd/JUDGE

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Smt S P Madhu v. N K G S B Co. Operative Bank

Case brief

What is this about?

What did the court decide?

Smt S P Madhu v. N K G S B Co. Operative Bank

Case brief

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