Vinay Mishra v. Baroda U.P. Bank

Court No. - 3 Case :- WRIT - C No. - 39775 of 2023 Petitioner :- Vinay Mishra Respondent :- Baroda U.P. Bank Counsel for Petitioner :- Pranjal Mehrotra Counsel for Respondent :- Gyan Prakash Shrivastava Hon'ble Siddhartha Varma,J. Hon'ble Shekhar B. Saraf,J.

¶1Heard learned counsel for the petitioner, learned Standing Counsel for the State-respondents and Sri Gyan Prakash Srivastava, learned counsel appearing for the Bank.

¶2By means of the present writ petition, the petitioner has prayed for a writ of mandamus directing the respondent/Bank to accept the outstanding dues against the petitioner in easy installments.

¶3Learned counsel for the petitioner submits that a loan was taken by the petitioner. He had also mortgaged a property bearing Arazi No. 52/2, Mauza Daniyalpur, Pargana Shivpur, Tahsil and District Varanasi, area 1360 square feet. 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 under the SARFAESI Act and demanded a sum of Rs.4,25,524/- along with interest and other charges. Learned counsel has drawn the attention of the Court to the order dated 30.9.2023 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.

¶4At the very outset learned counsel for the petitioner 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, 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 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 petitioner is not deposited as per the undertaking then the Bank shall be free to recover the debt pursuant to the recovery proceedings.

¶9With these observations the writ petition is disposed of. Order Date :- 28.11.2023 Rakesh (Shekhar B. Saraf, J.) (Siddhartha Varma, J.) High Court of Judicature at Allahabad