Dismissed

Shailaja Kumari v. the State Bank of Travancore

Kerala HC20 Feb 2013WP(C)/4737/2013

Case brief

AI extract

What is this about?

Petitioner, a loan defaulter, filed a writ petition seeking permission to arrange a private sale while SARFAESI proceedings were imminent. The court directed the bank to suspend recovery if the petitioner paid Rs. 5 Lakhs within a week, allowing private sale negotiations pending full clearance by March 31, 2013.

What did the court decide?

Proceedings against secured assets kept in abeyance if Rs. 5 Lakhs paid within one week; private sale permitted thereafter.

Shailaja Kumari Vs the State Bank of Travancore — Banking and Recovery | Kerala HC (2013)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE ANTONY DOMINIC

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WEDNESDAY, THE 20TH DAY OF FEBRUARY 2013/1ST PHALGUNA 1934

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WP(C).No. 4737 of 2013 (N)

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PETITIONER(S):

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SHAILAJA KUMARI, PROPRIETOR, M/S.AKHIL FIBRES, W/O.SUNIL KUMAR V.P.4/105, KOLLAMKONAM, VILAPPILSALA P.O. THIRUVANANTHAPURAM.

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BY ADVS.SRI.VINOD J.DEV

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SRI.PRAMOD J.DEV

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RESPONDENT(S):

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THE STATE BANK OF TRAVANCORE, STRESSED ASSETS RESOLUTION CENTRE, ZONAL OFFICE HOUSING BOARD BUILDING, SANTHI NAGAR THIRUVANANTHAPURAM - 695 001

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REPRESENTED BY ITS MANAGER.

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THE AUTHORISED OFFICER, STATE BANK OF TRAVANCORE STRESSED ASSETS RESOLUTION CENTRE, ZONAL OFFICE HOUSING BOARD BUILDING, SANTHI NAGAR

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THIRUVANANTHAPURAM - 695 001.

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BY SRI.R.S.KALKURA

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20-02-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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4737 of 2013

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APPENDIX

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PETITIONER(S) EXHIBITS

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EXHIBIT P1. TRUE COPY OF THE POSSESSION NOTICE DATED 20.03.2012 ISSUED BY THE 2ND RESPONDENT.

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EXHIBIT P2. THE TRUE COPY OF NOTICE ISSUED BY ADVOCATE JEEJA T.V.

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/true copy/

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sd/- P.A. To Judge

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ANTONY DOMINIC, J

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........................................ W.P.(C).4737/2013

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.............................................. Dated this the 20^th day of February, 2013

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JUDGMENT

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Heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent Bank.

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Petitioner availed of three loans from the respondent Bank and according to the Bank, the present liability is about Rs.27 Lakhs. On account of the defaults committed by the petitioner, SARFAESI proceedings were initiated and the property is scheduled to be taken over by the Bank on 20.2.2013. It is at that stage, this writ petition is filed and the prayer made by the petitioner is to allow her to arrange private sale of the property.

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Admittedly, petitioner is a defaulter. In such a case, Bank is entitled to take recovery proceedings as are permissible under the SARFAESI Act. In such circumstances, unless the petitioner makes a substantial payment, this Court will not be justified in requiring the Bank to keep its men away from the secured assets.

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W.P.(C).4737/13

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Therefore, I direct that if the petitioner pays an amount of Rs.5 Lakhs within one week from today, further proceedings against the secured assets will be kept in abeyance till 31.3.2013 and if the petitioner does not clear the liability in full before that date, Bank will be free to continue the recovery proceedings. In the meantime, it will also be open to the petitioner to move the Bank for arranging private sale of the property.

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Writ petition is disposed of as above.

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Sd/- ANTONY DOMINIC, JUDGE

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mrcs

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/true copy/

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sd/- P.A. To Judge

Shailaja Kumari v. the State Bank of Travancore

Case brief

What is this about?

What did the court decide?

Shailaja Kumari v. the State Bank of Travancore

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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