Disposed

Thakan Sah v. The State Bank Of India and Ors.

Patna HC12 Feb 2013CWJC/1036/2013

Case brief

AI extract

What is this about?

Disposed of a writ petition seeking to quash possession and sale notices under SARFAESI. Directed the petitioner to deposit dues in instalments by May 2013; stated that pending repayment, proceedings remain in abeyance and revival occurs upon default.

What did the court decide?

Provisional stay of SARFAESI proceedings conditional on deposit of dues in instalments by May 2013, with waiver of interest subject to bank consideration.

Thakan Sah Vs The State Bank Of India and Ors. — Banking and Recovery | Patna HC (2013)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.1036 of 2013

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====================================================== Thakan Sah S/O Sukhal Sah R/o Villge- Parsarma, P.S.- Supaul, DistrictSupaul .... .... Petitioner Versus 1. The State Bank of India through its Chairman/Managing Director Head Office, Mumbai 2. The Chief Manager (Rural)-cum-Authorized Officer, Regional Commercial Office, State Bank of India, Madhubani 3. The Authorized Officer, State Bank of India, Supaul 4. The Branch Manager, State Bank of India, A.D.B., Supaul .... .... Respondents ====================================================== Appearance : For the Petitioner/s : Mr. Neeraj Kr.Singh, Advocate For the Respondent SBI : Mr.Kaushlendra Kr.Sinha with Sunil Kr. Singh, Advocates ====================================================== CORAM: HONOURABLE MR. JUSTICE RAMESH KUMAR DATTA ORAL ORDER 4 12-02-2013 Heard learned counsel for the petitioner and learned counsel for the State Bank of India. The petitioner has filed the writ application for quashing the possession letter dated 13.1.2012 and the sale notice dated 26.12.2012 issued by the Chief Manager (Rural)-cum-Authorised Officer, State Bank of India by the latter of which his property has been put on auction sale.

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The petitioner had stood guarantor for a loan and given his landed property in mortgage for the same. The loan having become a Non-performing Asset, SARFAESI proceedings were initiated and ultimately the possession notice and the sale notice

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Patna High Court CWJC No.1036 of 2013 (4) dt.12-02-2013

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thereafter have been issued.

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As per the counter affidavit of the Bank, which is not denied by the petitioner, the total dues under the said loan account including the legal expenses and recovery charges come to Rs.7,86,275.49, out of which an amount of Rs.1,52,000/- has already been paid by the petitioner and the balance amount remaining to be recovered is Rs.6,54,275.49.

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Learned counsel for the petitioner submits on instructions that the petitioner is willing to liquidate the entire dues of the Bank within a period of three months in instalments as may be directed by this Court. It is, however, submitted by learned counsel that the Bank may be directed to consider waiver of at least part of the interest on the loan account in view of the payments being made by the petitioner.

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On a consideration of the aforesaid facts and circumstances and the stand of the petitioner, it is directed that the petitioner shall deposit an amount of Rs. 2 lacs on or before 12^th March, 2013 and shall thereafter deposit amounts of Rs.2 lacs each on or before 12^th April and 12^th May, 2013 respectively and the remaining amounts including interest on the reducing balance at the agreed rate on or before 12^th June, 2013. It would be open to the petitioner to file an application before the Bank for waiver of interest on the loan

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Patna High Court CWJC No.1036 of 2013 (4) dt.12-02-2013

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account which shall be considered by the Bank in accordance with the relevant circulars, guidelines and practice being followed in that regard. However, pendency of any such application shall not give any right to the petitioner not to deposit the instalments as and when they fall due and in case any waiver is granted by the Bank then the instalments payable on 12^th May or 12^th June as the case may be shall be adjusted accordingly.

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So long as the petitioner continues to deposit the amounts as directed in this order on the dates as specified, the SARFAESI proceedings shall remain in abeyance. Failure of the petitioner to deposit any instalment within the time granted by this Court shall lead to automatic revival of the SARFAESI proceedings and it would be open to the Bank thereafter to proceed further in the matter in accordance with law.

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The writ application is, accordingly, disposed of with the aforesaid directions.

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(Ramesh Kumar Datta, J)

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spal/-

Thakan Sah v. The State Bank Of India and Ors.

Case brief

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Thakan Sah v. The State Bank Of India and Ors.

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