A borrower challenged a SARFAESI Act demand notice and sought consideration of a one-time settlement proposal. Having deposited 20% of dues under an interim order, he was directed to pay 30%, then another 30%, then the balance 40% in successive months, failing which the Bank may proceed against him.
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NC: 2024:KHC:33856 WP No.3075/2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF AUGUST, 2024 BEFORE
THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR
WRIT PETITION NO.3075/2024 (GM-RES)
BETWEEN:
SRI. D. DAMODARACHETTY S/O D. GOPALCHETTY AGED ABOUT 54 YEARS R/AT NO.18-441, PALAMANER ROAD CHITTOR, ANDHRA PRADESH - 517001.
Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA
(BY SRI. RAKESH B. BHATT, ADV.,)
…PETITIONER
AND:
A BODY CORPORATE CONSTITUTED
UNDER THE BANKING COMPANIES ACT 1970 CHITTOR BRANCH NO. 3-32/4 OPP. LITTLE FLOWER SCHOOL C.B.ROAD, CHITTOR - 517 002 ANDRA PRADESH REP. BY ITS SENIOR BRANCH MANAGER.
…RESPONDENTS
(BY SRI. VIGNESH SHETTY, ADV.,)
THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED 24.11.23 (ANNEXURE-H). DIRECT THE RESPONDENTS TO CONSIDER THE PETITIONERS REQUEST FOR OTS AS PER LETTER DATED 30/08/2023 (ANNEXURE-E). GRANT AN INTERIM ORDER TO
NC: 2024:KHC:33856 WP No.3075/2024
STAY THE OPERATION OF DEMAND NOTICE DTD 24.11.23 (ANNEXURE-H) PENDING DISPOSAL OF THE WP.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR
ORAL ORDER
Office objection overruled.
The petitioner challenges the notice issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 hereinafter referred to as 'the Act') calling upon the petitioner to show cause as to why proceedings should not be initiated under the Act for recovery of loan amount due.
an interim order subject to petitioner depositing 20% of the amount in due to the Bank within six weeks.
by depositing a sum of Rs.14,60,000/- with the respondent -
NC: 2024:KHC:33856 WP No.3075/2024
Bank. The petitioner undertakes to clear the outstanding dues with the respondent - Bank if reasonable time is granted.
Sd/-
(HEMANT CHANDANGOUDAR) JUDGE
List No.: 1 Sl No.: 75
RV
1 issue framed by the court
Whether the Section 13(2) demand notice under the SARFAESI Act should be quashed and the borrower's OTS request considered.
2 provisions across 2 enactments
Sri. D. Damodarachetty
Bank of Baroda, Chittor Branch
Regional Manager, Bank of Baroda
Hemant Chandangoudar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
