Partly allowed

M/s. Divighnu Versions v. The Indian Overseas Bank

Telangana HC29 Oct 2013WP/30953/2013

Case brief

AI extract

What is this about?

In this writ petition, the petitioner challenged coercive recovery steps without compliance of Section 13(3A) of the SARFAESI Act following an objection. The court suspended coercion until the secured creditor issues a communication on the objection. The writ was disposed of at the admission stage.

What did the court decide?

Directed respondents not to take coercive steps or proceed for recovery of overdue amounts until an order as provided under Section 13(3A) of the SARFAESI Act is passed.

M/s. Divighnu Versions Vs The Indian… — Contract and Commercial Disputes | Telangana HC (2013)

¶1

THE HON’BLE Ms. JUSTICE G.ROHINI And

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THE HON’BLE SRI JUSTICE T.SUNIL CHOWDARY

¶3

WRIT PETITION No.30953 OF 2013

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Dated: 29.10.2013

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Between:

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M/s. Divighnu Versions rep. by its Proprietor

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.. Petitioner

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And

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The Indian Overseas Bank and another

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.. Respondents

¶11

THE HON’BLE Ms. JUSTICE G.ROHINI And THE HON’BLE SRI JUSTICE T.SUNIL CHOWDARY

¶12

WRIT PETITION No.30953 OF 2013

¶13

ORDER: (Per Hon’ble Ms. Justice G.Rohini)

¶14

The Petitioner was served with the demand notice dated 11.06.2013 issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’) calling upon the petitioner to pay in full and discharge its liabilities to the respondent bank under the loan facilities availed by the petitioner i.e., C C 1335 and T L 261200001.

¶15

It is pleaded that the petitioner submitted a representation dated 12.10.2013 expressing its willingness to regularise the loan account and requesting time. Alleging that without considering the petitioner’s representation dated 12.10.2013, the respondents are attempting to take coercive steps for recovery of the amounts overdue, the present writ petition is filed.

¶16

We have heard the learned counsel for the petitioner.

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It is to be noticed that as per Sub-Section (3A) of Section 13 of the SARFAESI Act, on receipt of the notice under Section 13(2), if the borrower makes any representation or raises any objection, the secured creditor is bound to consider the same and communicate the reasons for non-acceptance of the representation or objection to the borrower.

¶18

Having regard to the specific plea of the petitioner that such order as required under Sub-Section (3A) of Section 13 of the

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SARFAESI Act has not yet been communicated, we deem it appropriate to dispose of the Writ Petition with a direction to the respondents not to take any coercive steps and not to proceed against the petitioner for recovery of the amounts overdue without passing an order as provided under Sub-Section (3A) of Section 13 of the SARFAESI Act.

¶20

The Writ Petition is accordingly disposed of at the stage of admission. No costs.

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Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.

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____________

¶23

G.ROHINI, J

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_________________________ T.SUNIL CHOWDARY, J

¶25

Date: 29.10.2013 Ivd

M/s. Divighnu Versions v. The Indian Overseas Bank

Case brief

What is this about?

What did the court decide?

M/s. Divighnu Versions v. The Indian Overseas Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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