Allowed

R.Neelakandan v. Tamilnadu Mercantile Bank Ltd.

Madras HC8 Oct 2020WP/13922/2020

Case brief

AI extract

What is this about?

This Court permitted the successful auction purchaser to deposit the balance sale consideration delayed due to the COVID-19 pandemic, granting a two-week extension and directing payment of 7% interest p.a. from 01.07.2020.

What did the court decide?

Petitioner permitted to deposit balance consideration of Rs.25,11,000/- within two weeks by paying 7% interest p.a. from 01.07.2020.

R.Neelakandan Vs Tamilnadu Mercantile Bank Ltd. — Banking and Recovery | Madras HC (2020)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED 08.10.2020

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CORAM

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THE HONOURABLE MR. JUSTICE M.SATHYANARAYANAN AND THE HONOURABLE MRS. JUSTICE R.HEMALATHA

WP.No.13922/2020

R.Neelakandan

.. Petitioner

Versus

Tamil Nadu Mercantile Bank Ltd rep.by its Authoried Officer, 192, Ground Floor, Opp. To Govt. Hospital, Mayiladuthurai 609001

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.. Respondent

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Prayer:Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of mandamus directing the respondent Bank to accept the balance 75 percent of bid amount with regard to auction conducted on 16.03.2020 pertaining to Flat No.S3, 2^nd Floor, Balaji Nestele, Ward No.11, Mayuranathar South Car Street, Mayiladuthurai Taluk, Nagapattinam District and consequently issue the Sale Certificate in favour of the writ petitioner.

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For Petitioner : Mr.A.Joseph Dorairaj For Respondent : Mr.K.Sethuraman

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ORDER

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(1)By consent, the writ petition is taken up for final disposal and is disposed of by this order.

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(2)Mr.K.Sethuraman, learned Standing counsel accepts notice on behalf of the respondent – Bank.

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(3)The petitioner is the successful auction purchaser in respect of a residential Flat admeasuring to an extent of 1222 sq.ft. with a spread over area of 694 sq.ft of undivided share situate at Flat No.S3, 2^nd Floor, Balaji Nestele, Ward No.11, Mayuranathar South Car Street, Mayiladuthurai Taluk, Nagapattinam District. In the auction conducted by the respondent-Bank on 16.03.2020, the petitioner was the successful bidder for a sum of Rs.33,51,000/- and though he remitted a part of sale consideration, in respect of the remaining amount of Rs.25,11,000/-, he could not pay it on time on account of the sudden onset and thick spread of COVID-19

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https://hcservices.ecourts.gov.in/hcservices/

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pandemic virus. The petitioner, in this regard, has also submitted a representation dated 03.08.2020 to the respondent – Bank, praying for extension of time and since no response is forthcoming, he is constrained to approach this Court by filing the present writ petition.

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(4)The learned counsel for the petitioner would submit that if reasonable time is granted, the petitioner would definitely fulfill the commitment of paying the balance sale consideration and prays for appropriate orders.

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(5) Per contra, Mr.K.Sethuraman, learned Standing counsel appearing on behalf of the respondent-Bank would submit that in the light of the terms and conditions for which the petitioner had also agreed and participated in the auction proceedings, he has to remit the balance sale consideration within the stipulated time and this Court, taking into consideration, the development in the form of COVID-19 pandemic virus, may pass appropriate orders.

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(6)This Court has carefully considered the rival submissions and also perused the materials placed before it.

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(7)This Court can take judicial notice of the fact that on account of the sudden onset and fast spread of COVID-19, almost all economic activities came to a standstill and therefore, finds that the reason assigned by the petitioner for nondepositing of the balance sale consideration, deserves acceptance.

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(8)Therefore, the petitioner is permitted to deposit the balance sale consideration of Rs.25,11,000/- to the credit of the respondent-Bank within a period of two weeks from the date of receipt of a copy of this order and however, the petitioner shall pay interest @ 7% per annum from 01.07.2020 on the balance sale consideration of Rs.25,11,000/- till he pays the entire sale consideration within the time stipulated by this Court. It is made clear that if the petitioner defaults payment of the balance sale consideration with interest, as ordered by this Court, it is open to the respondent-Bank to proceed further in accordance with law.

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(9)The writ petition stands disposed of accordingly. No costs.

Sd/-

Assistant Registrar

//True Copy//

Sub Assistant Registrar

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https://hcservices.ecourts.gov.in/hcservices/

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AP To

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The Authoried Officer, Tamil Nadu Mercantile Bank Ltd 192, Ground Floor, Opp. To Govt. Hospital, Mayiladuthurai 609001.

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WP.No.13922/2020

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MTI(CO) RMP(11/11/2020)

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https://hcservices.ecourts.gov.in/hcservices/

R.Neelakandan v. Tamilnadu Mercantile Bank Ltd.

Case brief

What is this about?

What did the court decide?

R.Neelakandan v. Tamilnadu Mercantile Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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