Dismissed

Chandan Patra v. the Principal Secy to Govt., Finance Dept., Bbsr

Orissa HC19 Sept 2024WP(C)/23067/2024

Case brief

AI extract

What is this about?

The High Court of Orissa, in a writ petition challenging an ongoing auction of mortgaged property, directed the bank to consider stopping the auction finalization if the petitioner deposits Rs.40 lakhs within a day. Upon subsequent payment, the bank was allowed a 45-day window to restructure the outstanding loan amount before taking further legal action.

What did the court decide?

The petition was disposed of with a direction to the bank to consider halting the auction finalization upon deposit of Rs.40,00,000/- and allow the petitioner to clear the remainder within forty-five

Chandan Patra Vs the Principal Secy to… — Contract and Commercial Disputes | Orissa HC (2024)

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IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.23067 of 2024

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Chandan Patra

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…. Petitioner Represented By Adv. Mr. Arupananda Goswamy

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-versus-

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…. The Principal Secretary to the Opposite Parties Government, Finance Department, Bhubaneswar & Ors.

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Represented By AGA Mr. D. Mund (for O.P.1) Mr. Anjan Kumar Biswal, Adv. (for O.Ps.2 and 3)

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CORAM:

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DR. JUSTICE S.K. PANIGRAHI

Order

ORDER 19.09.2024

No.

1 . This matter is taken up through hybrid arrangement.

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2 . The Petitioner has filed this Writ Petition seeking a direction from this Court to the Opposite Party Nos.2 and 3 for restructuring of the outstanding loan amount in pursuant to NPA and providing adequate time for

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Page 1 of 4

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// 2 //

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clearance of the outstanding loan amount in respect of the Account No.19194011000116, Punjab National Bank, CRPF Branch, Nayapalli, Bhubaneswar.

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3. Heard learned counsels for the Parties.

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4. Learned counsel for the Petitioner submits that the Petitioner had availed one Business Cash Credit Loan amounting to Rs.1.35 crores on collateral security or equitable mortgage of his only house and the said loan was completed on 19.11.2018 followed by disbursement on 21.11.2018. The said loan account slipped into NPA in April, 2023.

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5. On Notice, learned counsel for the Opposite Party Nos.2 and 3/Punjab National Bank submits that since the mortgage property of the present Petitioner has already been put to auction which is fixed to 21.09.2024, the Opposite Party Nos.2 and 3/Punjab National Bank cannot stall the auction process.

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6. Learned counsel for the Petitioner submits that the Petitioner is ready to pay Rs.40,00,000/- by tomorrow and the rest of the loan amount will be paid within forty-five days hence.

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Page 2 of 4

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// 3 //

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7. Learned counsel for the Opposite Party Nos.2 and 3/Punjab National Bank vehemently objects the submission made by the learned counsel for the Petitioner.

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8. Though this Court is conservative in interfering with the financial matter, but, considering the financial difficulties faced by the present Petitioner and his bonafideness in repaying the loan amount, this Court requests the Opposite Party Nos.2 and 3/Punjab National Bank to consider the present Petitioner’s plea of repayment of the loan amount of Rs.40,00,000/- by tomorrow and upon payment of the said amount by the present Petitioner by tomorrow, the Opposite Party Nos.2 and 3/Punjab National Bank shall consider the difficulty of the Petitioner giving him some window to pay the rest of the amount which shall not be more than forty-five days. If the petitioner fails to repay the entire loan within the stipulated time, the Opposite Party Nos.2 and 3/Punjab National Bank is free to take any legal action.

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9. It is directed that upon payment of Rs.40,00,000/- by the present Petitioner by tomorrow, the auction shall not

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Page 3 of 4

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// 4 //

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be finalized by the Opposite Party Nos.2 and 3/Punjab National Bank.

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10. Accordingly, the Writ Petition is disposed of.

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11. Urgent certified copy of this order be issued in course of the day.

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(Dr. S.K. Panigrahi)

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Judge

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Sumitra

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Signature Not Verified

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Digitally Signed Signed by: SUMITRA NAYAK Designation: Jr. Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 19-Sep-2024 16:41:24

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Chandan Patra v. the Principal Secy to Govt., Finance Dept., Bbsr

Case brief

What is this about?

What did the court decide?

Chandan Patra v. the Principal Secy to Govt., Finance Dept., Bbsr

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

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