M/S Shanti Bhog Food Products and Another v. State of U.P. and Another

Court No. - 3 Case :- WRIT - C No. - 37220 of 2023 Petitioner :- M/S Shanti Bhog Food Products And Another Respondent :- State of U.P. and Another Counsel for Petitioner :- Meraj Ahmad Khan,Akhilesh Misra Counsel for Respondent :- CSC,Krishna Mohan Asthana,Ramesh Kumar Shukla Hon'ble Siddhartha Varma,J. Hon'ble Manoj Bajaj,J.

¶1Heard Sri Akhilesh Mishra, learned counsel for the petitioners, learned Standing Counsel and Sri Ramesh Kumar Shukla, learned counsel appearing for the Bank.

¶2By means of the present writ petition, the petitioners have prayed for quashing demand notice dated 30.08.2023 issued under Section 13(2) 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. 2.

¶3Learned counsel for the petitioners submits that a loan was taken by the petitioners against which properties being House No.2/845 (40.54 sq. mts.) & 2/866 (40.535 sq. mts.) situated at Avas Vikas Colony, Buddhi Vihar, Moradabad in the name of Mrs. Nidhi Gupta and a commercial cum residential property measuring

56.83 sq. mts. situated at Mauja Majhola Purvi, Tehsil & District Moradabad in the names of Mr. Subodh Gupta and Mrs. Nidhi Gupta were mortgaged. 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 30.08.2023 under the SARFAESI Act and demanded a sum of Rs. 2,19,14,559/- alongwith interest and other charges. Learned counsel has drawn the attention of the Court to the impugned notice dated 30.08.2023.

¶4At 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 four equal monthly installments.

¶5Learned counsel for the Bank does not dispute the fact that pursuant to the recovery proceedings including the impugned notice dated 30.08.2023 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 four 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 four 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 petitioners, 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 GS (Manoj Bajaj, J.) (Siddhartha Varma, J.) High Court of Judicature at Allahabad