Disposed

Sri N L Lokesh v. State Bank of India

Karnataka HC7 Aug 2024WP/5660/2023

Case brief

AI extract

What is this about?

Writ petition challenging a Section 14 SARFAESI order allowing the bank to take physical possession of loan-collateral assets. Petitioner deposited Rs.8,97,000 and undertook to repay; court disposed of petition directing staged deposits by December 2024, failing which bank may enforce possession.

What did the court decide?

Petition disposed; petitioner directed to deposit Rs.10 lakh by 31.08.2024, Rs.10 lakh by 15.10.2024, and clear balance by 31.12.2024, else bank may enforce Section 14 SARFAESI order.

Sri N L Lokesh Vs State Bank of India — Banking and Recovery | Karnataka HC (2024)

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1 - NC: 2024:KHC:33631 WP No. 5660 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 7^TH DAY OF AUGUST, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 5660 OF 2023 (GM-RES)

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BETWEEN:

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SRI. N. L. LOKESH, S/O LATE SRI. LAKSHMANA, AGED 55 YEARS, RESIDING AT NO.923, ASHIRVAD NILAYA, BEHIND GANDHADH KOTE, K.R.PURAM, HASSAN – 573 101.

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…PETITIONER

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(BY SMT. SANDHYA U PRABHU., 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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STATE BANK OF INDIA, REPRESENTED BY ITS AUTHORIZED OFFICER, MANAGER, MR. SHIVARAM B.K., REGIONAL OFFICE, N.R. CIRCLE, HASSAN - 573 101.

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…RESPONDENT (BY SRI. B. PRASANNA KUMAR., ADVOCATE FOR C/R) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER OF THE LEARNED PRL.SENIOR CIVIL JUDGE AND CJM AT HASSAN DATED 31.01.2023 PRODUCED AT ANNEXURE – C AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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2 - NC: 2024:KHC:33631 WP No. 5660 of 2023

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ORAL ORDER

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The petitioner has filed the present petition challenging the order passed by the jurisdictional Magistrate, exercising powers under Section 14 of the SARFAESI Act, which permitted the respondent-Bank to take physical possession of the secured assets belonging to the petitioner. These assets had been offered as collateral security for the repayment of a loan borrowed by the petitioner.

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This Court, by order dated 10.03.2023, granted an interim order restraining the respondent-Bank from taking physical possession of the secured assets, subject to the condition that the petitioner deposits a sum of Rs.8,97,000/- within the stipulated period. The petitioner has complied with this interim order by depositing the said amount with the respondent-Bank, which has not been disputed by the respondent-Bank. The petitioner has further undertaken to clear the outstanding loan by December 2024 and, in order to demonstrate his bona fides, has expressed his willingness to deposit an additional sum of Rs.10,00,000/- on or before 31.08.2024.

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In light of the petitioner's undertaking and compliance with the interim order, the petition is hereby disposed of with the following directions:

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(i) The petitioner is directed to deposit an additional sum of Rs.10,00,000/- with the respondent-Bank on or before 31.08.2024.

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NC: 2024:KHC:33631 WP No. 5660 of 2023

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(ii) A further sum of Rs.10,00,000/- shall be deposited by the petitioner with the respondent-Bank on or before 15.10.2024.

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(iii) The petitioner shall clear the balance outstanding amount in its entirety on or before 31.12.2024.

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In the event of any default by the petitioner in adhering to the aforementioned payment schedule, the respondent-Bank shall be at liberty to enforce the order passed by the jurisdictional Magistrate under Section 14 of the SARFAESI Act, permitting the Bank to take physical possession of the secured assets.

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The petition is disposed of accordingly, with liberty reserved to the respondent-Bank to act in accordance with the law in the event of non-compliance by the petitioner.

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Sd/-

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(HEMANT CHANDANGOUDAR) JUDGE

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RKA

Sri N L Lokesh v. State Bank of India

Case brief

What is this about?

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Sri N L Lokesh v. State Bank of India

Case brief

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