Disposed

Madhusudan Jyoti v. State Bank of India

Orissa HC6 Sept 2017WP(C)/14344/2016

Case brief

AI extract

What is this about?

The Court disposed of a writ petition challenging demand and possession notices issued by a Bank under the SARFAESI Act. Directing the petitioner to deposit Rs. 3 lakhs within four weeks and apply for One Time Settlement/repayment, the Court ordered that no coercive action be taken pending the Bank's consideration of the settlement application.

What did the court decide?

Direction to deposit Rs. 3 lakhs and apply for One Time Settlement; no coercive action pending final decision.

This writ petition has been filed challenging the demand notice dated 04.05.2013 (Anneuxre-1) and possession notice dated 11.09.2013 (Anneuxre-3) issued by the oppo site parties-Bank under section 13(2) and (4) of the SARFAESI Act for recovery of the loan due s.

Learned counsel for the petitioner submits that the petitioner had ava iled three term loans amounting to Rs.47.00 lakhs from the opposite parties-Bank for running o f an educational institution. It is submitted that though the petitioner had paid some amount, due to financial stringency, he could not repay the balance amount for which the opposite par ties-Bank has initiated the action under the SARFAESI Act. It is further submitted that pursua nt to the order of this Court dated 15.09.2016, the petitioner has deposited an amount of Rs.4 .00 lakhs with the opposite parties-Bank towards repayment of the loan dues. It is further sub mitted that the petitioner is ready and willing to make payment of a substantial amount toward s down payment against his outstanding loan account and shall apply for One Time Settlement an d/or rephasement as per the guidelines of the Bank.

Learned counsel for opposite parties-Bank does not dispute the factual position regarding deposit of Rs.4.00 lakhs with the opposite parties-Bank in terms of order dated 15.09.2016. It is submitted that the present outstanding loan dues of the petitioner is about Rs.14.15 lakhs after adjustment of the payment already made. It is fairly submitted that if the petitioner by depositing a substantial amount again makes an application for One Time Settlement, the Bank shall consider the same sympathetically as per the existing 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.3,00,000/-(rupees three lakhs) with the opposite parties- Bank within four weeks hence and files an application for One Time Settlement/compromise/ reph asement of the loan account, the same shall be considered by the Bank sympathetically in terms of its existing scheme and as has been done in similar other cases and final decision shall b e 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.

Madhusudan Jyoti v. State Bank of India

Case brief

What is this about?

What did the court decide?

Madhusudan Jyoti v. State Bank of India

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

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