Disposed

Kedarnath Padhi v. Bm,Sbi,Bhadrak

Orissa HC7 Sept 2017WP(C)/23641/2015

Case brief

AI extract

What is this about?

The High Court restrained the respondent Bank from taking coercive action against the petitioner pending a final decision on an application for one-time settlement or rephasing, conditional upon the petitioner depositing Rs.3.00 lakhs within four weeks.

What did the court decide?

Coercive action stayed pending deposit of Rs.3.00 lakhs and application for On-Time Settlement/rephasing within four weeks.

This writ petition has been filed challenging the notice dated 17.12.2 015 (Annexure-2) issued by the Bank under which the Bank has asked the petitioner to pay the l oan dues. Learned counsel for the petitioner submits that the petitioner had ava iled one housing loan of Rs.5.00 lakhs, cash credit loan of Rs.5.00 lakhs and KCC loan of Rs.5 6,000/- from the opp.parties-Bank in the year 2012-13. It is submitted that though the petitio ner had repaid some amount, due to acute financial hardship, he could not repay the balance lo an dues in time for which the Bank has initiated action under the SARFAESI Act. It is further submitted that the petitioner is ready and willing to make payment of a substantial amount tow ards down payment against his outstanding loan account and shall apply for One Time Settlement /rephasement/regularisation which may be considered sympathetically by the Bank as has been do ne in other similar cases.

Learned counsel for the opp.parties-Bank on instruction submits that the present outstanding loan dues against the petitioner in total is about Rs.15.18 lakhs. It is fairly submitted that if the petitioner by depositing a substantial amount again makes an a pplication for One Time Settlement/rephasement/regularisation, the Bank shall consider the sam e sympathetically as per the guidelines of the Bank and as has been done in other similar case s.

Considering the submissions made, it is directed that in the event the petitioner deposits an amount of Rs.3.00 lakhs (rupees three lakhs) with the opp.parties-Bank within four weeks hence and files an application for One Time Settlement/rephasement/regulari sation of the loan accounts, the same shall be considered by the Bank sympathetically in terms of its existing guidelines and as has been done in similar other cases and final decision sha ll 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.

Kedarnath Padhi v. Bm,Sbi,Bhadrak

Case brief

What is this about?

What did the court decide?

Kedarnath Padhi v. Bm,Sbi,Bhadrak

Case brief

What is this about?

What did the court decide?

What the court decided

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