Disposed

Smt. Ragni Kumari v. The Chairman Canara Bank

Patna HC7 Mar 2022CWJC/1134/2022

Case brief

AI extract

What is this about?

The Patna High Court disposed of a petition to quash a SARFAESI Act notice. Due to the non-functioning of the Debt Recovery Tribunal, the court fixed terms for a ₹15 lakh deposit, a proposal for debt redetermination and interest waiver, and a stay on coercive action pending the bank's decision.

What did the court decide?

Quashing of notice conditioned on deposit of ₹15 lakhs, submission of a proposal for redetermination and interest waiver, and a stay on coercive action for eight weeks.

Smt. Ragni Kumari Vs The Chairman Canara Bank — Contract and Commercial Disputes | Patna HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.1134 of 2022

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Smt. Ragni Kumari, Wife of Sri Madhav Kumar Singh, Resident of VillagePahsara, Ward No.16, Post Office- Pahsara Bhabangama, Police StationNowkothi, District- Begusarai.

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... ... Petitioner/s

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Versus

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The Chairman Canara Bank having its head office at 112, J.C. Road, Bangalore (Karnataka).

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The Regional Manager, Canara Bank, Purnia.

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The Authorize Officer-cum-Chief Manager, Canara Bank, Harrakh Branch, Begusarai, Bihar.

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The Branch Manager, Harrakh Branch, Begusarai, Bihar.

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... ... Respondent/s

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====================================================== Appearance : For the Petitioner/s : Mr. Sanjeet Kumar, Advocate For the Respondent/s : Mr. Sanjay Singh Thakur, Advocate Mr. Sameer Kumar, Advocate

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CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

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Date : 07-03-2022

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Heard learned counsel for the parties.

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The petitioner has prayed for the following relief/s :-

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“for quashing of the notice dated 20.08.2021 issued under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, issued by authorized officer of Canara Bank, Begusarai, Harrakh Branch, Begusarai by which a demand notice has been issued to the petitioner for payment of Rs.70,82,610/- (Rs. Seventy Lac Eighty Two Thousand Six Hundred Ten Only) to the petitioner, as proprietory of M/s Ragni Egg Fresh.”

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Patna High Court CWJC No.1134 of 2022 dt.07-03-2022 2/3

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We are entertaining the present petition in view of the fact that at this point in time, the Debt Recovery Tribunal is not functional on account of non-appointment of Presiding Officer.

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Learned counsel for the petitioner states that petitioner is ready and willing to settle the matter with the Bank. To show her bona fides , petitioner undertakes to deposit ₹15,00,000/- (Rupees Fifteen lacs only) on or before 22.03.2022.

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Taking a holistic view, we dispose of the present petition on the following mutually agreeable terms:-

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(a) Petitioner shall positively deposit a sum of ₹15,00,000/- (Rupees Fifteen lacs) with the respondent Bank on or before 22.03.2022;

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(b) Petitioner shall make herself available in the office of the Respondent No. 4, namely, the Branch Manager, Canara Bank, Harrakh Branch, Begusarai, Bihar on 22.03.2022 at 10:30 A.M. with a proposal, complete in all aspect, for-(i) redetermining the amount due and payable by the petitioner to the Bank; (ii) seeking waiver of interest on the principal amount due and payable in terms of the policy of the Bank as also the guidelines issued by the Reserve Bank of India;

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Patna High Court CWJC No.1134 of 2022 dt.07-03-2022 3/3

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request within a period of eight weeks thereafter;

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(d) Such decision has to be in accordance with law;

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the guidelines issued by the Reserve Bank of India and maintaining parity;

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(e) Till the time proposal is pending with the authorities, no coercive action shall be taken against the petitioner.

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(f) If the petitioner fails to deposit a sum of ₹15,00,000/- (Rupees Fifteen lacs), as undertaken by her, or repay the amount in terms of the schedule fixed by the Bank on mutually agreeable terms, it shall be open for the Bank to take recourse to the remedies in accordance with law, including sale of mortgaged/hypothecated property.

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Petition stands disposed of in the aforesaid terms. Interlocutory Application(s), if any, stands disposed of.

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(Sanjay Karol, CJ)

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( S. Kumar, J)

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Ashwini/Sujit

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AFR/NAFR CAV DATE Uploading Date 09.03.2022 Transmission Date

Smt. Ragni Kumari v. The Chairman Canara Bank

Case brief

What is this about?

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Smt. Ragni Kumari v. The Chairman Canara Bank

Case brief

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