Disposed

Sabita Rani Mishra v. State of Odisha

Orissa HC4 Sept 2017WP(C)/22694/2015

Case brief

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What is this about?

In a writ petition challenging a possession notice issued under the SARFAESI Act, the High Court stayed coercive action conditionally. The Court directed the petitioner to deposit Rs. 4 lakhs and apply for OTS/rephasing, upon which the Bank must consider the application sympathetically within four weeks before taking any final resolution.

What did the court decide?

Staying coercive action; directing petitioner to deposit Rs. 4 lakhs and apply for OTS/rephasing for the Bank to consider sympathetically within four weeks.

4. 4.9.2017 W.P.(C) No. 22694 of 2015 Heard learned counsel for the petitioners, learned counsel for the State appearing for opp.par ty no.2 and Mr. G.D.Kar, learned counsel for the opp.party no.4-Bank. This w rit petition has been filed challenging the possession notice dtd.25.11.2015 (Annexure-6) issu ed by the opp.party no.4-Bank for taking possession of the mortgaged property for recovery of the loan dues.

Learned counsel for the petitioners submits that the petitioners had a vailed a term loan of Rs. 17.10 lakhs and cash credit loan of Rs.1.90 lakhs from the opp.part y no.4-Bank in the year 2010. It is submitted that though the petitioners had repaid some amou nt, due to acute financial stringency, they could not repay the balance loan dues for which th e opp.party no.4-Bank has initiated action under the SARFAESI Act. It is also submitted that p ursuant to the order of this Court dated 6.1.2016, the petitioner has deposited an amount of R s.5.00 lakhs with the opp.party no.4-Bank. It is further submitted that the petitioners are re ady and willing to make payment of a substantial amount towards down payment against their out standing loan account and shall apply for OTS and/or rephasement which may be considered sympa thetically by the opp.party no.4-Bank as has been done in other similar cases.

Learned counsel for the opp.party no.4-Bank does not dispute the factu al position regarding payment of Rs.5.00 lakhs in terms of the order dated 6.1.2016. He also s ubmits that the present outstanding loan dues against the petitioners is about Rs.22.59 lakhs. It is fairly submitted that if the petitioners by depositing a substantial amount again make an application for OTS and/or rephasement, the Bank shall consider the same sympathetically 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 petitioners deposit an amount of Rs.4,00,000/- (rupees four lakhs) with the opp.party nos.3,4 and 5-Bank within four weeks hence along with an application for OTS and/or rephasement of th e loan account, the same shall be considered by the Bank sympathetically in terms of its exist ing guidelines and as has been done in similar other cases and final decision shall be taken t hereon within a period of four weeks thereafter.

It is needless to say that if the petitioners do not comply with the d irection as specified above or defaults in making payment of the subsequent instalments as wou ld be fixed by the Bank, the Bank shall be at liberty to take recourse to such steps as provid ed in law.

Sabita Rani Mishra v. State of Odisha

Case brief

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Sabita Rani Mishra v. State of Odisha

Case brief

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