Disposed

M/s Shankar Enterprises v. The Union of India

Patna HC15 Feb 2022CWJC/2193/2022

Case brief

AI extract

What is this about?

In this writ petition, the Patna High Court, noting the Debt Recovery Tribunal's non-functionality, disposed of the matter by granting mutually agreeable terms. The court allowed a partial payment and granted undertaking for future deposits, ordering the bank to reassess dues, consider interest waivers under RBI guidelines, and maintain the status quo regarding asset sale proceedings.

What did the court decide?

Conditional approval of settlement including partial payment, undertaking for further deposits, and maintaining status quo pending bank's reassessment of dues and interest waiver request.

M/s Shankar Enterprises Vs The Union of India — Contract and Commercial Disputes | Patna HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.2193 of 2022

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M/s Shankar Enterprises Village - Hasanpur Surat, P.O. and P.S. - Patory, District- Samastipur (Bihar), through its proprietor Uday Shanker @ Uday Shanker Choudhary.

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Uday Shanker @ Uday Shanker Choudhary Son of Late Bishun Choudhary Village - Hasanpur Surat, P.O. and P.S. - Patory, District- Samastipur (Bihar) proprietor of M/s Shankar Enterprises).

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Abhay Shanker @ Abhay Shanker Choudhary Son of Late Bishun Choudhary Village - Hasanpur Surat, P.O. and P.S. - Patory, DistrictSamastipur (Bihar).

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... ... Petitioner/s

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Versus

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The Union of India Department of Financial Service, Ministry of Finance, Government of India, New Delhi, through its Secretary.

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The State Bank of India, madam Kama Road, Mumbai (Maharashtra) through its Chairman.

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The Assistant General Manager, State Bank of India, Stressed Assets Recovery Branch (SARB), 2nd Floor, Patna Main Branch Building, West of Gandhi Maidan, Patna (Bihar).

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The Authorized Officer, State Bank of India, Stressed Assets Recovery Branch (SARB), 2nd Floor, Patna main Branch Building, West of Gandhi Maidan, Patna (Bihar).

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The Branch Manager, State Bank of India, Patory Branch, Patory, DistrictSamastipur (Bihar).

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... ... Respondent/s

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Appearance : For the Petitioner/s : Mr. Rajendra Narayan, Sr. Advocate Ms. Anju Kumari @ Anju Narain, Advocate For the Respondent/s : Mr. Dr. Krishna Nandan Singh, ASG Mr. Shiv Narayan Thakur, Advocate Mr. Sanjay Singh Thakur, 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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(The proceedings of the Court are being conducted by Hon’ble the Chief Justice/ Hon’ble Judges through Video Conferencing from their residential ofÏces/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their residences/ofÏces.)

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Patna High Court CWJC No.2193 of 2022 dt.15-02-2022 2/5

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Date : 15-02-2022 Heard learned counsel for the parties.

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Petitioners have prayed for the following relief(s):-

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Patna High Court CWJC No.2193 of 2022 dt.15-02-2022 3/5

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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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Shri Sanjay Singh Thakur, learned counsel for the respondent Bank states that the process of auction is underway. Though he could not verify, but also not dispute the statement made by Shri Rajendra Narayan, learned Senior Counsel appearing on behalf of the petitioner that in the month of February, 2022 itself petitioner has deposited a sum of 35 lacs.₹

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We notice that the total amount due and payable by the petitioner as on 19^th of January, 2021 was 72,20,329.36. ₹

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We are satisfied about the petitioners’ bona fides of settling the matter with the respondent Bank.

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Additionally, petitioners undertake to deposit a sum of ₹5 lacs within a period of seven days from today.

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As such, we dispose of the present petition on the following mutually agreeable terms:-

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(a) Petitioners shall make themselves available in the office of Respondent No. 3, namely the Assistant General Manager, State Bank of India, Stressed Assets Recovery Branch (SARB), 2^nd Floor, Patna Main Branch

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Patna High Court CWJC No.2193 of 2022 dt.15-02-2022 4/5

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Building, West of Gandhi Maidan, Patna (Bihar), on 22^nd of February, 2022 at 10:30 A.M. with a proposal, complete in all aspect, for-(i) re-determining the amount due and payable by the petitioners to the Bank; (ii) the period within which the remaining amount shall be deposited by the petitioners to the Bank, which, in the present case is six equal monthly instalments; (iii) seeking waiver of interest as per the policy of the Bank as also in terms of guidelines issued by the Reserve Bank of India;

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(d) Such decision has to be in accordance with law; the guidelines issued by the Reserve Bank of India and maintaining parity;

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(h) Till such time the decision is taken on the petitioners’ request, status quo as of now i.e. 15^th of February, 2022, 1:30 P.M. shall be maintained and the process of sale shall not be allowed to be concluded.

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(f) If the petitioners fail to 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

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Patna High Court CWJC No.2193 of 2022 dt.15-02-2022 5/5

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recourse to the remedies in accordance with law, including sale of mortgaged/hypothecated property;

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(g) Should the need so arise, petitioners shall be at

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liberty to take recourse to such other remedies as are available in accordance with law;

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

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disposed of.

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(Sanjay Karol, CJ)

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(S. Kumar, J)

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Amrendra/PKP

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AFR/NAFR
CAV DATE
Uploading Date	17.02.2022
Transmission Date

M/s Shankar Enterprises v. The Union of India

Case brief

What is this about?

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M/s Shankar Enterprises v. The Union of India

Case brief

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