Disposed

Kommu Srinivasa Rao v. The State Bank of India

Telangana HC4 Jul 2014WP/5791/2014

Case brief

AI extract

What is this about?

This order briefly adjourns a writ petition challenging a SARFAESI notice for issuing a court-directed time-bound payment plan to deposit outstanding loan amount with interest in six monthly installments, preventing immediate enforcement.

What did the court decide?

Directing petitioners to pay outstanding amount with interest in six equal monthly installments starting 1st August 2014; Registry barred from entertaining extension applications.

Kommu Srinivasa Rao Vs The State Bank of… — Contract and Commercial Disputes | Telangana HC (2014)

¶1

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

¶2

THE HON’BLE SMT JUSTICE ANIS

¶3

WRIT PETITION No.5791 OF 2014

¶4

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

¶5

This Writ Petition, under Article 226 of the Constitution of India, is filed to declare the action on the part of the respondents herein in issuing notice, dated 20.12.2013, for non-payment of installments and interest, as arbitrary and illegal and consequently direct the respondents not to proceed against the properties under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’), which is totally illegal and unfair as laid down in the law.

¶6

2. Facts are not in dispute. Petitioners herein obtained loan from respondent No.1 –Bank for construction of a building. Admittedly, petitioners are running educational institution for the last 12 years. Notice under Section 13 (2) and (14) of the SARFAESI Act has been issued to petitioner No.1 to repay the entire outstanding together with upto date interest and applicable charges and close the loan accounts.

¶7

3. It is not in dispute that the petitioners have taken loan from respondent No.1-Bank. At the time of issuing Notice before admission, this Court directed the petitioners to deposit an amount of Rs.4,00,000/to respondent No.1-Bank on or before 07.04.2014. According to the learned counsel for respondent No.1-Bank approximately as on today petitioners have an amount of Rs.20,00,000/- lakhs is due to the Bank.

¶8

4. Learned counsel for the petitioners stated that a reasonable time be granted to the petitioners and they can deposit the entire amount in six equal monthly installments. Accepting the submission made by

¶9

learned counsel for the petitioners, the Writ Petition is disposed of directing the petitioners to pay the outstanding amount with interest in six equal monthly installments commencing from 1^st August, 2014. For the purpose of determination of monthly installment, petitioners are directed to approach the Bank authorities. If the petitioners fail to pay any monthly installment, the respondent-Bank shall proceed further in accordance with law. As the time is granted at the request of the learned counsel for the petitioners, Registry is directed not to entertain any application seeking extension of time or modification of condition as mentioned above. There shall be no order as to costs. Miscellaneous petitions, if any, pending in this Writ Petition shall stand closed.

¶10

_____________________ JUSTICE K.C.BHANU

¶11

__________ JUSTICE ANIS

¶12

JULY 04, 2014

¶13

YVL

¶14

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

¶15

THE HON’BLE SMT JUSTICE ANIS

¶16

WRIT PETITION No.5791 OF 2014

¶17

04.07.2014

¶18

YVL

Kommu Srinivasa Rao v. The State Bank of India

Case brief

What is this about?

What did the court decide?

Kommu Srinivasa Rao 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

M.Changalraya Reddy, Vs The Deputy Director

Datti Eswara Rao, Vs Ch.Simahachalam

Dasa Gangadhar S/o, Kistaiah, Vs The Government of Andhra Pradesh

T. Subramanyam, Vs The State of Ap.

Bitra Siva Nagamalleswara Rao Vs The Honble Chairman, Special Court under the Andhra

The State Of Andhra Pradesh Vs Sri.Satyanarayana