Petitioner sought writ declaring bank's refusal to accept one time settlement proposal illegal. Court dismissed petition at admission stage, noting no scheme permits guarantors to apply for such settlement against borrower's wishes.
Writ petition dismissed at admission stage; pending miscellaneous petitions closed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
HON’BLE SRI JUSTICE R.SUBHASH REDDY
AND
HON’BLE SRI JUSTICE A.SHANKAR NARAYANA
WRIT PETITION No.38202 of 2015
ORDER : (per Hon’ble Sri Justice R.Subhash Reddy)
This writ petition is filed by the petitioner seeking Mandamus to declare the action of respondent Nos.1 and 2 – Bank in not accepting the proposal made by him for one time settlement even though he is ready to pay 50% of the amount due as equitable guarantor and taking coercive steps to take over the mortgaged property of the petitioner, as arbitrary and illegal.
2. It is fairly submitted by the learned counsel for petitioner that though 3rd respondent is the borrower, it did not make any application for one time settlement of the loan obtained by it.
3. During the course of hearing, learned counsel for the petitioner has not produced any material or guidelines or scheme, which permits the guarantor to make an application for one time settlement of the loan obtained by the original borrower, in the absence of which, the petitioner, as a matter of right, cannot seek a direction by way of Mandamus from this Court for one time settlement of the loan obtained by the 3rd respondent-borrower. If the petitioner, being a guarantor, is prepared to pay 50% of the loan amount due, it is for him to approach the respondent-Bank in that regard.
4. For the aforesaid reasons, this writ petition is devoid of merits and it is accordingly dismissed, at the admission stage. As a sequel, miscellaneous petitions pending, if any, shall stand closed. No order as to costs.
JUSTICE R. SUBHASH REDDY
JUSTICE A.SHANKAR NARAYANA
08.12.2015.
Msr
HON’BLE SRI JUSTICE R.SUBHASH REDDY
AND
HON’BLE SRI JUSTICE A.SHANKAR NARAYANA
WRIT PETITION No.38202 of 2015
08.12.2015
Msr
3 issues framed by the court
Whether a guarantor can compel a bank to grant one time settlement via writ when no scheme permits guarantors to apply for such settlement.
Whether the court can direct a bank to accept a proposal to pay 50% of the loan amount due as equitable guarantor.
Whether the writ petition lacks merit and should be dismissed at the admission stage.
Petitioner
Respondent Nos. 1 and 2
Third Respondent
R. SUBHASH REDDY
A. SHANKAR NARAYANA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
