Allowed

Sivasakthi Traders v. The State Bank of India

Telangana HC5 Aug 2014WP/11529/2014

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging SARFAESI proceedings. Directing the petitioner to pay 50% of the loan within four weeks and the balance within four weeks thereafter to prevent confirmation of the auction sale.

What did the court decide?

Direction to pay 50% of outstanding loan amount within four weeks and the balance within the next four weeks to prevent confirmation of auction sale.

Sivasakthi Traders Vs The State Bank of… — Contract and Commercial Disputes | Telangana HC (2014)

¶1

THE HON’BLE SRI JUSTICE K.C. BHANU AND THE HON’BLE MRS JUSTICE ANIS

¶2

WRIT PETITION No.11529 OF 2014

¶3

ORDER:(per Hon’ble Sri Justice K.C.Bhanu)

¶4

This Writ Petition is filed under Article 226 of the Constitution of India to declare the action of the respondent bank in initiating proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’) as illegal and arbitrary, consequently set aside the notices dated 10.05.2013 under Section 13(4) of the SARFAESI Act and consequential proceedings including auction.

¶5

2. Heard both sides.

¶6

3. Learned counsel for the petitioner submitted that the petitioner-debtor is ready and willing to pay the entire amount due to the bank, if a reasonable time is granted to the petitioner.

¶7

4. There cannot be any dispute that the bank is only interested to recover the amount either by way of auction of the secured assets or payment by the debtor himself. When the interim order was passed by this Court, the petitioner has shown some interest in discharging the loan. A Demand Draft for Rs.10,00,000/- was given to the learned counsel appearing for the bank and the same has been recorded by this Court. Now the petitioner has come forward fairly that he would pay the entire amount due to the bank.

¶8

5. Considering these aspects, we direct the petitioner to pay 50% of the outstanding loan amount as on today within a period of

¶9

four (04) weeks from the date of receipt of a copy of this order and pay the remaining balance amount within a period of four (04) weeks thereafter. We make it clear that if the petitioner fails to fulfill any one of the two conditions as mentioned above, sale can be confirmed and the sale certificate can also be issued to the auction purchaser. Registry is directed not to entertain any application seeking ‘extension of time’ or ‘for being mentioned’ in this regard.

¶10

6. Accordingly, the Writ Petition is disposed of. No order as to costs. Miscellaneous Petitions, if any, pending in this writ petition shall stand closed.

¶11

JUSTICE K.C. BHANU

¶12

___________ JUSTICE ANIS

¶13

Date:05.08.2014 Note: Furnish C.C. within two (02) days (B/O) INL

Sivasakthi Traders v. The State Bank of India

Case brief

What is this about?

What did the court decide?

Sivasakthi Traders v. The State Bank of India

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

Similar cases

Panguluri Venkata Ravi Vs Shaik Mastan Vali

Penu Pranay Enterprises, Vs The Syndicate Bank

M/s. Bezawada Motor Pvt.Ltd, rep.by Managing Director, Vs Indian Bank

M/s. Deccan Chronicles Holdings Limited Vs The Debt Recovery Tribunal

Kambampati Purnachandra Rao, Vs State Bank of India

K.Rajeswara Rao, S/o. Appalaswamy Vs Government of Telangana