M/S Ramesh Mastsya Udhyog and Another v. State of U.P. and 2 Others

Court No. - 3 Case :- WRIT - C No. - 39430 of 2023 Petitioner :- M/S Ramesh Mastsya Udhyog And Another Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Madan Mohan Srivastava Counsel for Respondent :- CSC,Vinay Kumar Singh Hon'ble Siddhartha Varma,J. Hon'ble Shekhar B. Saraf,J.

¶1Heard learned counsel for the petitioners, learned Standing Counsel for the State and Sri Ravindra Kumar Srivastava, learned counsel appearing for the Bank.

¶2By means of the present writ petition, the petitioner has prayed for quashing of the possession notice dated 10.10.2023 issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act) by the Bank.

¶3Learned counsel for the petitioners submits that a loan was taken by the petitioner. Petitioners had also mortgaged a property bearing Araji No.1569/26/1 area 3.113 acre, Araji No.1569/26/2 area 0.260 acre, Araji No.1569/26/3 area 0.770 acre, Araji No.1569/26/4 area 0.410 acre and Araji Nos.4354 area 1.569 acre, 4355 area 1.569 and 4356 area 1.570. Petitioners had also taken Cash Credit Limit of Rs.9,90,000/-. 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 against the petitioners.

¶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 three equal monthly installments.

¶5Learned counsel for the Bank does not dispute the fact that pursuant to the impugned notice dated 10.10.2023 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 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 petitioners, the bank shall inform the petitioner 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 :- 23.11.2023 Kuldeep High Court of Judicature at Allahabad High Court of Judicature at Allahabad