Partly allowed

Sri Jayanthi Giriswamy, v. The Authorised officer

Telangana HC2 Sept 2016WP/29643/2016

Case brief

AI extract

What is this about?

Writ petition challenging an e-auction sale notice under SARFAESI Act was allowed to be disposed of by recording settlement. Court directed a two-month moratorium on sale confirmation, allowing repayment via specific monthly installments. Default leads to resumption of sale; compliance leads to cancellation of proceedings.

What did the court decide?

Sale not to be confirmed for two months; petitioners allowed to repay loan in two equal monthly installments; on compliance, sale cancelled and account closed.

Sri Jayanthi Giriswamy, Vs The Authorised… — Contract and Commercial Disputes | Telangana HC (2016)

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THE HON’BLE SRI JUSTI CE C.V.NAGARJUNA REDDY

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AND

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THE HON’BLE SRI JUSTI CE G.SHYAM PRASAD

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WRI T PETI TI ON No.29643 of 2016

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02.09.2016

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Between:

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Sri Jayanthi Giriswamy and another

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..Petitioners

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And

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The Authorised Officer, Syndicate Bank, Ongole and another

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..Respondents

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Counsel for the petitioners: Mr.M.V.Subba Reddy

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Counsel for the respondents: Mr.A.Krishnam Raju, standing counsel

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The Court made the following:

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CVNR, J & GSP, J W.P.No.29643 of 2016 02.09.2016

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ORDER: (Per the Hon’ble Sri Justice C.V.Nagarjuna Reddy)

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The e-auction sale notice, dated 21.07.2016, issued by respondent No.1 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, is questioned by the petitioners, who are the borrower and the guarantor respectively.

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After arguing the case on merits, Mr.M.V.Subba Reddy, learned counsel for the petitioners, has finally submitted that his clients are willing to repay the entire loan amount along with interest as shown in the impugned e-auction sale notice, if two months time is given.

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Mr.A.Krishnam Raju, learned standing counsel for the Syndicate Bank, appearing for the respondents, has fairly accepted the above offer.

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In view of the above submissions of the learned counsel for the parties, the Writ Petition is disposed of in the following terms:-

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(a) The respondents are permitted to go ahead with the sale as scheduled under the impugned e-auction sale notice, dated 21.07.2016, but the same shall not be confirmed for a period of two months;

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(b) The petitioners are permitted to repay the entire loan amount along with interest in two equal monthly installments, of which, the first installment shall be paid on or before 30.09.2016 and the second installment shall be paid on or before 02.11.2016;

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(c) In default of complying with the conditions referred to in clause (b) supra, the respondents shall be free to proceed further towards the sale proceedings; and

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(d) In the event of the petitioners paying of the entire amount as directed hereinabove, the respondents

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CVNR, J & GSP, J W.P.No.29643 of 2016 02.09.2016

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shall cancel the sale proceedings and close the petitioners’ loan account(s).

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As a sequel to disposal of the writ petition, W.P.M.P.No.36691 of 2016 filed by the petitioners for interim relief shall stand disposed of as infructuous.

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___________________________ C.V.NAGARJUNA REDDY, J

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______________________ G.SHYAM PRASAD, J

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02^nd September, 2016 GHN

Sri Jayanthi Giriswamy, v. The Authorised officer

Case brief

What is this about?

What did the court decide?

Sri Jayanthi Giriswamy, v. The Authorised officer

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

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