M/S Satya Building Material v. India Bank, Zonal Office and Another

Court No. - 3 Case :- WRIT - C No. - 41238 of 2023 Petitioner :- M/S Satya Building Material Respondent :- India Bank, Zonal Office And Another Counsel for Petitioner :- Manoj Kumar Singh Counsel for Respondent :- Abhishek Ahuja Hon'ble Siddhartha Varma,J. Hon'ble Shekhar B. Saraf,J.

¶1Heard learned counsel for the petitioner and Sri Abhishek Ahuja, learned counsel for the Bank.

¶2By means of the present writ petition, the petitioner has prayed for quashing the notice dated 4.10.2023 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 respondents.

¶3Learned counsel for the petitioner submits that cash credit loan was taken by the petitioner. He had also mortgaged a property. Learned counsel has further pointed out that when the petitioner could not maintain the required balance, the creditor Bank initiated proceedings of recovery under the SARFAESI Act.

¶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 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 4.10.2023, 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 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 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 proceed with the impugned notice.

¶9With these observations the writ petition is disposed of. Order Date :- 30.11.2023 Kuldeep (Shekhar B. Saraf,J.) (Siddhartha Varma,J.) High Court of Judicature at Allahabad