Partly allowed

Karpagam.R v. The Authorized Officer

Madras HC26 Apr 2023WP(MD)/9930/2023

Case brief

AI extract

What is this about?

In this writ petition, the petitioner challenged an auction notice issued by the respondent bank for sale of immovable properties securing a debt. The High Court stayed the sale proceedings to provide the petitioner an opportunity to redeem the secured asset by paying the outstanding principal and an additional sum as adherum.

What did the court decide?

Sale notice stayed; Petitioner directed to pay remaining debt plus Rs.5.06 lakhs; Balance in 5 EMI; Bank permitted to sell on default.

Karpagam.R Vs The Authorized Officer — Banking and Recovery | Madras HC (2023)

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W.P.(MD) No.9930 of 2023

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 26.04.2023

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CORAM:

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THE HON'BLE MR.T.RAJA, THE ACTING CHIEF JUSTICE and

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THE HON'BLE MR.JUSTICE R.SUBRAMANIAN

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W.P.(MD) No.9930 of 2023 and WMP(MD) No.8737 & 8738 of 2023

R.Karpagam

... Petitioner

-vs-

The Authorized Officer, Indian Overseas Bank Puvalur Branch No.26A Ariyalur Main Road Puvalur Trichy District. ... Respondent

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PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari to call for the records in pertaining to the impugned E Auction sale notice dated 23.03.2023 issued by the respondent bank for sale notice of immovable secured assets issued under Section 8(6) and 9(1) of the Security Interest (Enforcement) Rules – 2002 for sale of petitioner's immovable properties

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____________ Page 1 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.9930 of 2023

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including residential building situated in S.F.No.91/2 measuring 2000 sq. ft. out of Ac.0.72 Cents and S.F.No.91/3 measuring 400 sq. ft. out of Southern Portion of Ac.0.39 Cents in the total an extent of Ac.1.43 Cents totally 2400 Sq. Ft. of land bearing Plot No.3 situated at Sirdhayaur Village, Lalgudi town and Panchayat, Lalgudi Taluk, Trichy District and quash the same as illegal.

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For Petitioner : Mr.K.Arunraj For Respondent : Mr.N.Dilipkumar

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O R D E R

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[Order of the Court was made by The Hon'ble The ACTING CHIEF JUSTICE]

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In view of the fact that the Debts Recovery Tribunal, Madurai, is not

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manned, we are entertaining this writ petition.

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2. Mr.N.Dilip Kumar, learned counsel, takes notice for the

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respondent Bank.

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3. With the consent of both sides, this writ petition is taken up for

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final hearing at the admission stage itself.

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Page 2 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.9930 of 2023

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4. The sale notice, dated 23.03.2023, issued by the respondent – Bank, is under challenge in this writ petition.

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5. Sale is scheduled to be held on 28.04.2023.

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6. Learned counsel for the petitioner would submit that the petitioner would be in a position to liquidate the entire debt, if sometime is granted to him.

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7. In order to give an opportunity to the petitioner to redeem the secured asset, this writ petition is disposed of with the following directions: (i) The respondent – Bank shall not proceed with the sale,

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if the petitioner pays a sum of Rs.5,06,494/- (Rupees five lakhs six thousand four hundred and ninety four only) to the respondent – Bank, on or before 23.05.2023.

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(ii) The balance amount of Rs.15,00,000/- (Rupees fifteen lakhs only) shall be paid by the petitioner in five equated monthly installments commencing from June,

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Page 3 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.9930 of 2023

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The monthly instalments shall be paid on or

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before 23^nd of every succeeding month.

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(iii) The interest payable for the interregnum period and the

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cost of the sale shall be paid along with the last instalment.

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(iv) If there is a default in payment as directed above, the

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respondent – Bank can proceed with the sale.

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No costs. Consequently, connected miscellaneous petitions are closed.

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[T.R., A.C.J.] [R.S.M, J.] 25.04.2023

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NCC : Yes / No Index : Yes / No

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To The Authorized Officer, Indian Overseas Bank Puvalur Branch No.26A Ariyalur Main Road Puvalur Trichy District.

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____________ Page 4 of 5

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https://www.mhc.tn.gov.in/judis

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W.P.(MD) No.9930 of 2023

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THE HON'BLE THE ACTING CHIEF JUSTICE and R.SUBRAMANIAN, J.

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W.P.(MD)No.9930 of 2023

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26.04.2023

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____________ Page 5 of 5

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https://www.mhc.tn.gov.in/judis

Karpagam.R v. The Authorized Officer

Case brief

What is this about?

What did the court decide?

Karpagam.R v. The Authorized Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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