Disposed

Saroj Devi Swami v. Uco Bank,Sambalpur Branch

Orissa HC11 Sept 2017WP(C)/14173/2016

Case brief

AI extract

What is this about?

A writ petition challenging notices under the SARFAESI Act was disposed of by directing the Bank to consider an application for One Time Settlement sympathetically if the petitioner deposits Rs.1 lakh and files the application.

What did the court decide?

Directs petitioner to deposit Rs.1 lakh and apply for One Time Settlement; suspends coercive action thereafter; Bank to decide within four weeks.

This writ petition has been filed challenging the demand notice dated 05.09.2015 (Anneuxre-2), possession notice dated 04.05.2016 (Anneuxre-3) and subsequent E-Auct ion/Sale Notice dated 26.07.2016 (Anneuxre-4) issued by the opposite parties-Bank under sectio n 13(2) and (4) of the SARFAESI Act for recovery of the loan dues.

Learned counsel for the petitioner submits that the petitioner had ava iled a house building loan of Rs. 7.50 lakhs from the opposite parties-Bank in April, 2010 for construction of her residential house. It is submitted that though the petitioner had paid s ome amount, due to financial stringency, she could not repay the balance amount for which the opposite parties-Bank has initiated the action. It is further submitted that pursuant to the o rder of this Court dated 23.08.2016, the petitioner deposited an amount of Rs.2,00,000/- towar ds loan dues. It is also submitted that the petitioner had further deposited an amount of Rs.4 0,800/- to the loan account in the meantime. It is further submitted that the petitioner is re ady and willing to make payment of a substantial amount towards down payment against her outst anding loan account and shall apply for One Time Settlement and/or rephasement as per the guid elines of the Bank.

Learned counsel for opposite parties-Bank does not dispute the factual position regarding deposit of Rs.2.00 lakhs with the opposite parties-Bank in terms of order dated 23.08.2016 and also subsequent deposit of Rs.40,800/- It is submitted that the pres ent outstanding loan dues of the petitioner is about Rs.5.80 lakhs after adjustment of the pay ment already made. It is fairly submitted that if the petitioner by depositing a substantial a mount again makes an application for One Time Settlement, the Bank shall consider the same sym pathetically as per the guidelines of the Bank and as has been done in other similar cases.

Considering the submissions made, it is directed that in the event the petitioner deposits an amount of Rs.1,00,000/-(rupees one lakh) with the opp.parties- Bank wi thin four weeks hence and files an application for One Time Settlement and/or rephasement of t he loan account, the same shall be considered by the Bank sympathetically in terms of its exis ting guidelines and as has been done in similar other cases and final decision shall be taken thereon within a period of four weeks thereafter.

It is needless to say that if the petitioner does not comply with the direction as specified above or defaults in making payment of the subsequent instalments as wo uld be fixed by the Bank, the Bank shall be at liberty to take recourse to such steps as provi ded in law.

Saroj Devi Swami v. Uco Bank,Sambalpur Branch

Case brief

What is this about?

What did the court decide?

Saroj Devi Swami v. Uco Bank,Sambalpur Branch

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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