Disposed

M/S.Tarini Enterprises v. a.O.,Hdfc Bank and Anr.

Orissa HC12 Sept 2017WP(C)/13095/2017

Case brief

AI extract

What is this about?

The court directed the Bank to consider a one-time settlement application if the petitioner deposits Rs. 8 lakhs within four weeks and authorised a stay on coercive actions regarding the disputed loan properties. Failure to comply may result in recourse to legal steps.

What did the court decide?

Directed petitioner to deposit Rs. 8 lakhs within four weeks with O.T.S. application; stay on coercive action pending Bank's decision on settlement.

This writ petition has been filed challenging the Dema nd Notice dated 02.6.2017 (Annexure-1), issued by the opposite parties-Bank under Section 13(2 ) of the SARFAESI Act for recovery of the loan dues with a further prayer to direct the Bank t o settle the loan account by way of one time settlement and allow the petitioner to repay the same in instalments.

Learned counsel for the petitioner submits that the pe titioner had availed a cash credit loan facility of Rs.35 lakhs from the opposite parties-Bank in the year 2013 for business purpose. It is submitted that though the petitioner has repaid some amount, due to acute financial hardship he could not pay the balance amount, for which th e Bank has initiated action under the SARFAESI Act for realisation of the loan dues. It is sub mitted that pursuant to the interim order of this Court dated 12.7.2017, the petitioner had de posited Rs.4.30 lakhs with the opposite parties-Bank towards the loan dues. It is submitted th at the petitioner is ready and willing to deposit a substantial amount towards down payment ag ainst his outstanding loan account and shall file an application for one time settlement/repha sement/regularisation, which may be considered by the Bank sympathetically and as has been don e in similar other cases.

Learned counsel for the opposite parties-Bank submits that though this Court vide order dated 12.7.2017 had directed the petitioner to deposit Rs.8 lakhs, the petitioner has deposited only Rs.4.30 lakhs. It is submitted that the present outst anding loan amount against the petitioner is about Rs.34.06 lakhs after adjustment of the paym ent already made. It is fairly submitted that if the petitioner deposits a substantial amount towards the outstanding loan dues and makes an application for one time settlement/ rephasemen t/regularisation, the Bank shall consider the same in terms of its existing guidelines and as has been done in similar other cases.

Considering the submissions made, it is directed that in the event the petitioner deposits an amount of Rs.8 lakhs with the opposite parties-Bank wi thin four weeks hence along with an application for one time settlement/rephasement/regularisa tion of the loan account, the Bank shall consider the same in terms of its existing guidelines and as has been done in similar other cases and take a decision thereon within four weeks the reafter.

Till a final decision is taken on the application of t he petitioner for one time settlement/rephasement/regularisation, no coercive action shall be taken in respect of the properties of the petitioner pursuant to the Demand Notice dated 02.6. 2017, as per Annexure-1 to the writ petition.

It is needless to say that if the petitioner does not deposit the amount as directed above within the stipulated period or defaults in making paymen t of the subsequent instalments to be fixed by the Bank after one time settlement/rephasement/ regularisation, the Bank shall be at liberty to take recourse to such steps as provided in law .

M/S.Tarini Enterprises v. a.O.,Hdfc Bank and Anr.

Case brief

What is this about?

What did the court decide?

M/S.Tarini Enterprises v. a.O.,Hdfc Bank and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

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