Disposed

Bruhaspati Khamari v. a.O.,Sbi,Agricultur

Orissa HC21 Jul 2016WP(C)/21045/2013

Case brief

AI extract

What is this about?

In a writ petition challenging SARFAESI Act proceedings for an agricultural loan default, the court directed the petitioner to deposit Rs.16.00 lakhs within one month to enable the bank to consider his one time settlement application. Failure to comply would result in the order being vacated.

What did the court decide?

Direction to deposit Rs.16.00 lakhs within one month to file for one time settlement; bank to consider same; order vacuumable on failure.

The petitioner had taken an agricultural loan of an amount of Rs.50.00 lakhs from the op posite party bank on 05.03.2011. Since there was default in payment of regular instalment, the bank had issued notice under Section 13(2) of the Securitization and Reconstruction of Financ ial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to SARFAESI Ac t) on 20.05.2013. The petitioner, thereafter filed an application for one time settlement, but the same was not considered and on 07.08.2013 possession notice under Section 13(4) of the SA RFAESI Act was issued. The petitioner has thus approached this Court with the prayer for quash ing of the proceedings under the SARFAESI Act and also for direction to opposite party bank to settle the loan account of the petitioner under the One Time Settlement Scheme as per the RBI guideline.

Sri G.D. Kar, learned counsel appearing for the opposite party bank says that though aft er the notice under Section 13(2) was issued the petitioner had applied for one time settlemen t, the said application having not been made by the petitioner as per the RBI guidelines was n ot considered. He has further stated that as on 30.06.2016 the outstanding amount comes to Rs. 63.86 lakhs and in case the petitioner deposits 25% of the amount and files an application for one time

settlement, the same shall be considered in accordance with law. Learned counsel for the petit ioner states that the petitioner shall deposit the said amount within one month. In view of the aforesaid facts and circumstances, we dispose of this writ petition with a direction that in case the petitioner deposits a sum of Rs.16.00 lakhs with the opposite par ty bank within one month from today and files an application for considering his case for one time settlement/compromise, the same shall be considered and decided in accordance with law as expeditiously as possible, preferably within six months of filing such application. The petit ioner shall thereafter comply with the direction as may be given on the application for one ti me settlement/compromise. In case the petitioner does not deposit the amount of Rs.16.00 lakhs within the time as indicated above or fails to comply with the further orders as would be pas sed by the bank on his one time settlement/compromise application, this order shall stand vaca ted and the bank shall be at liberty to recover the entire amount from the petitioner in accor dance with law.

Bruhaspati Khamari v. a.O.,Sbi,Agricultur

Case brief

What is this about?

What did the court decide?

Bruhaspati Khamari v. a.O.,Sbi,Agricultur

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

Coram

Case details

Similar cases

Basanti Sahoo Vs National Insurance Co.Ltd.

Saheb Nayak Vs State of Odisha

Management of M/S.Paradeep Phosphates Ltd. Vs Government of India

B.v.Ranganath Vs State

Athaya Ku.Nayak Vs State and Ors.

Bhimraj Vs State