Disposed

Sri Mahanandeeswara Educational Society Having its v. Union of India

Telangana HC14 Aug 2014WP/23613/2014

Case brief

AI extract

What is this about?

In a writ petition challenging a possession notice under the SARFAESI Act, the High Court accepted the petitioner's genuine request to repay the loan. Consequently, proceedings under Section 13(4) were kept in abeyance for 16 weeks, contingent upon the petitioner paying 50% of dues within 8 weeks.

What did the court decide?

Proceedings under Section 13(4) SARFAESI Act kept in abeyance for 16 weeks subject to 50% payment within 8 weeks.

Sri Mahanandeeswara Educational Society Having its Vs… — 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.23613 OF 2014

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

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This Writ Petition is filed seeking to issue a writ of Mandamus declaring the possession notice, dated 31.7.2014, issued under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “the SARFAESI Act”) in respect of the properties described thereunder by respondent No.2 as illegal and arbitrary, and consequently, to set aside the said notice.

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2. The petitioner, which is an Educational Society, obtained term loans from the respondent Bank for construction of buildings and development of infrastructure to the schools. As the petitioner Society failed to repay the term loans, the account of the petitioner Society was treated as Non-performing Asset. The respondent Bank issued a demand notice, dated 19.5.2014, under Section 13(2) of the SARFAESI Act to the petitioner. Later, the respondent Bank sent a possession notice on 31.7.2014 in respect of the alleged mortgaged properties. Hence, the present writ petition.

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3. Learned counsel for the petitioner Society stated that if a reasonable time is granted, the petitioner Society would pay the entire outstanding amount to the respondent Bank.

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4. We accept the genuine request made by the learned counsel for the petitioner. The respondent Bank is also interested to recover the entire due amount. Therefore, all the proceedings initiated under Section 13(4) of the SARFAESI Act shall be kept in abeyance for a

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period of sixteen (16) weeks. In the first instance, the petitioner shall pay 50% of the outstanding loan amount within a period of eight (8) weeks from today and the remaining amount in another eight (8) weeks thereafter. If the petitioner fails to fulfill anyone of the conditions mentioned above, the order of abeyance shall stand vacated without further reference to this Court. Registry is directed not to entertain any application for “Extension of Time” or “For Being Mentioned” in this regard.

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5. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs.

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

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JUSTICE K.C.BHANU

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JUSTICE ANIS Date: 14.8.2014 AMD

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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.23613 OF 2014

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DATE: 14.8.2014

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AMD

Sri Mahanandeeswara Educational Society Having its v. Union of India

Case brief

What is this about?

What did the court decide?

Sri Mahanandeeswara Educational Society Having its v. Union of India

Case brief

What is this about?

What did the court decide?

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