Disposed

Nirmala Medical Store v. Balasore Co-Op Urban Bank Ltd.

Orissa HC12 Sept 2017WP(C)/15794/2017

Case brief

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What is this about?

This judgment disposed of a writ petition challenging a possession notice under the SARFAESI Act. The Court directed that if the petitioner deposits Rs.1 lakh and applies for a one-time settlement, the Bank must consider the application without taking coercive action on the mortgaged property for four weeks.

What did the court decide?

Directed that no coercive action be taken on mortgaged properties pending the Bank's decision on the petitioner's application for one-time settlement/rephasing/regularisation, conditional upon deposit

This writ petition has been filed challenging the Poss ession Notice dated 05.6.2017 (Annexure-2), issued by the opposite parties-Bank under Section 13(4) of the SARFAESI Act for taking possession of the mortgaged property for recovery of the loan dues.

Learned counsel for the petitioner submits that the pe titioner had availed a term loan of Rs.8 lakhs in the year 2014 from the opposite parties-Bank for running a medical store. It is submitted that though the petitioner has repaid some amoun t, due to acute financial hardship he could not pay the balance amount, for which the Bank has initiated action under the SARFAESI Act for realisation of the loan dues. It is submitted tha t pursuant to the interim order of this Court dated 21.8.2017, the petitioner had deposited Rs .2 lakhs with the opposite parties-Bank towards the loan dues. It is submitted that the petiti oner is ready and willing to deposit a substantial amount towards down payment against his out standing loan account and shall file an application for one time settlement/rephasement/regula risation, which may be considered by the Bank sympathetically and as has been done in similar other cases.

Learned counsel for the opposite parties-Bank, does no t dispute the factual position regarding deposit of Rs.2 lakhs by the petitioner with the oppo site parties-Bank, in terms of the interim order of this Court dated 21.8.2017. It is submitte d that the present outstanding loan amount against the petitioner is about Rs.5.40 lakhs after adjustment of the payment already made. It is fairly submitted that if the petitioner deposit s a substantial amount towards the outstanding loan dues and makes an application for one time settlement/ rephasement/regularisation, the Bank shall consider the same in terms of its exis ting 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.1,00,000/-(rupees one lakh) with the oppo site parties-Bank within four weeks hence along with an application for one time settlement/re phasement/regularisation 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 w ithin four weeks thereafter.

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 Possession Notice dated 05.6. 2017 as per Annexure-2 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 .

Nirmala Medical Store v. Balasore Co-Op Urban Bank Ltd.

Case brief

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Nirmala Medical Store v. Balasore Co-Op Urban Bank Ltd.

Case brief

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