M/S Alsa Tractors and Another v. M/S Bank of Baroda and 2 Others

Court No. - 3 Case :- WRIT - C No. - 38178 of 2023 Petitioner :- M/S Alsa Tractors And Another Respondent :- M/S Bank Of Baroda And 2 Others Counsel for Petitioner :- Ashutosh Sharma Counsel for Respondent :- Anadi Krishna Narayana Hon'ble Siddhartha Varma,J. Hon'ble Manoj Bajaj,J.

¶1Heard Sri Ashutosh Sharma, learned counsel for the petitioners and Sri Anay Kumar Srivastava, learned counsel appearing for the Bank.

¶2By means of the present writ petition, the learned counsel for petitioners has prayed for quashing demand notice dated 23.09.2021 issued under Section 13(2) read with Section 13(3) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act") by the respondent no. 3.

¶3Learned counsel for the petitioners submits that a loan was taken by the petitioners. He had also mortgaged a property bearing Gata no. 21, Area 425 Sq. Mtr. situated at Chak Suar, Tehsil-Suar, District Rampur (U.P.) which was in the name of Sri Ammer Ahmad Khan S/o Mohammad Jama Khan & Chotey Lal S/o Kalyan Rai. Learned counsel has further pointed out that when certain payments of the loan installments were not made, the creditor Bank initiated proceedings of recovery under the SARFAESI Act by issuing notice dated 23.09.2021 under the SARFAESI Act and demanded a sum of Rs. 29,75,829/- alongwith interest and other charges. Learned counsel has drawn the attention of the Court to the impugned notice dated 23.09.2021 and asserted that the Bank has taken symbolic possession of the mortgaged property and would be strongly taking further steps to recover the dues by auctioning the mortgaged property.

¶4Learned counsel for the petitioners has stated that despite the fact that the one time settlement had failed, the petitioners were ready to deposit the entire amount in four equal instalments. At the very outset learned counsel for the petitioners has proposed to deposit 25% of the outstanding amount within a period of one month from today, with an undertaking that the remaining amount shall be paid in next three equal monthly installments.

¶5Learned counsel for the Bank does not dispute the fact that pursuant to the recovery proceedings including the impugned notice dated 23.09.2021 no auction proceedings have been fixed. He, however, states that the Bank has no objection if the borrower is willing to clear the debt by paying 25% of the outstanding amount within a period of one month from today and remaining amount in next three equal monthly installments.

¶6In view of the above stand of the learned counsel for the parties, at this stage, without looking into the merits of the case, we deem it appropriate to afford an opportunity to the borrower to clear the debt by paying 25% of the outstanding amount within a period of one month from today, and the remaining amount in next three equal monthly installments. The outstanding debt be directed to be paid with up-to-date interest.

¶7Needless to say that when the last installment is paid by the petitioner, the bank shall inform the petitioners the interest amount which would have accrued by the last date of payment and it shall be paid along with the last installment.

¶8We clarify that, if, the amount as has been promised by the petitioners is not deposited as per the undertaking then the Bank shall be free to recover the debt pursuant to the impugned notice.

¶9With these observations the writ petition is disposed of. Order Date :- 6.11.2023 M.S. Ansari (Manoj Bajaj, J.) (Siddhartha Varma, J.) High Court of Judicature at Allahabad