Disposed

N. Vasantha, v. The State Bank of India

Telangana HC14 Aug 2014WP/23547/2014

Case brief

AI extract

What is this about?

The High Court, under Article 226, disposed of a writ petition challenging an E-Auction Notice under the SARFAESI Act. The petitioner, a widowed guarantor, offered to pay the full reserved price. The Court granted a setting aside of the sale confirmation, requiring the petitioner to pay half the amount (Rs. 55 lakhs) in two installments over six weeks total, while the auction proceedings were allo

What did the court decide?

Petition disposed; petitioner granted six weeks to pay Rs. 55 lakhs to stay sale confirmation of Item No.3; auction allowed to continue.

N. Vasantha, Vs The State Bank of India — Banking and Recovery | Telangana HC (2014)

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THE HON'BLE SRI JUSTICE K.C.BHANU AND

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THE HON’BLE MRS JUSTICE ANIS

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WRIT PETITION NO.23547 OF 2014

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

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This Writ Petition, under Article 226 of the Constitution of India, is filed to declare E-Auction Notice, dated 11.07.2014, issued by respondent No.2 Bank under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’) to an extent of Item No.3 property bearing Plot No.14 in survey Nos.105 to 112, 113/Part and 114/Part, situated at Hafizpet Village, Serilingampally Mandal and Municipality, Ranga Reddy District, as arbitrary and illegal and consequently, set aside the same.

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2. Principal borrower has taken loan of Rs.20,00,00,000/- from the respondent Bank by depositing the title deeds, for which, the petitioner stood as a guarantor. When the borrower failed to pay the loan amount, the said loan account was declared as ‘Non- Performing Asset’. Respondent Bank issued notice under Section 13 (2) of the SARFAESI Act, but no amount has been paid. Thereafter notice under Section 13 (4) of the SARFAESI Act has been issued for sale of the property. As seen from the sale notice, reserved price fixed for Item No.3 is Rs.1,10,00,000/-.

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3. Learned counsel for the petitioner submitted that if reasonable time is granted to the petitioner, she is ready to pay an amount of Rs.1,10,00,000/, which was the reserved price fixed for Item No.3 property.

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4. On the other hand, learned Standing Counsel for respondent Bank opposed the same on the ground that the respondent Bank already fixed the auction of the properties on 22.08.2014 and hence, he prays to dismiss the Writ Petition.

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5. Considering the factual back ground of the petitioner as she is a

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widow and she is only a guarantor, who has come forward to pay the amount to the extent of her giving security, we grant some reasonable time to her. Petitioner shall pay an amount of Rs.55,00,000/- (Rupees fifty five lakhs only) within six (6) weeks from today and the remaining amount within six (6) weeks thereafter. In the mean while, auction may go on, but sale shall not be confirmed in respect of Item No.3 of the property. If the petitioner fails to pay the amount as directed above, the respondent Bank is at liberty to confirm the sale and can execute sale certificate in favour of auction purchaser i.e., the highest bidder. After conducting auction before confirmation of sale in respect of Item No.3 property, if the bid amount fetches more than Rs.1,10,00,000/-, surplus amount shall be paid to the petitioner within six (6) weeks thereafter provided the two conditions as stated above are fulfilled by the petitioner. Registry is directed not to entertain any application seeking ‘extension of time’ or ‘for being mention’ in this regard.

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6. With the above observation, the Writ Petition is disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, shall stand closed.

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_____________________ JUSTICE K.C.BHANU ______________ JUSTICE ANIS AUGUST 14, 2014 YVL

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

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WRIT PETITION NO.23547 OF 2014

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Date: 14.08.2014

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YVL

N. Vasantha, v. The State Bank of India

Case brief

What is this about?

What did the court decide?

N. Vasantha, v. The State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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