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2025 Supreme(RAJ) 467

HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
Mr. Justice Vinit Kumar Mathur, J
PARAMJEET SINGH – Appellant
Versus
AWAS FINANCERS LIMITED – Respondent
CW / 19288 / 2023



Advocates:
Mr. Amit Dutt Chhangani, Mr. Lalit Kumar Purohit, Mr. Arpit Mehta

Non-compliance with a court's interim order precludes the granting of relief in a writ petition.

Headnote:(A) SARFAESI Act - Section 14 - Writ petition filed against the order of the District Collector for recovery of loan amount - Petitioners failed to comply with interim order to deposit Rs.4,00,000/- and claimed financial incapacity - Court found no grounds for relief as petitioners did not repay the loan - Order dated 19.07.2023 stayed conditionally on petitioners' assurance to deposit amount. (Paras 3, 4, 9)

(B) Compliance with Court Orders - The failure to comply with an interim order undermines the petitioners' request for relief, leading the Court to dismiss the writ petition. (Paras 5, 10)

Facts of the case:
The petitioners took a loan from the respondent-Bank and failed to deposit the due amount, leading to proceedings under the SARFAESI Act. The District Collector's order dated 19.07.2023 prompted the writ petition.

Findings of Court:
The petitioners did not comply with the Court's interim order and were unable to repay the loan, resulting in the dismissal of the writ petition.

Issues: The main issue was whether the petitioners could be granted relief despite their non-compliance with the Court's order.

Ratio Decidendi: The Court held that non-compliance with a conditional order negates the possibility of relief being granted in the writ petition.

Result: Writ petition dismissed.

Order

1. Heard learned counsel for the parties.

2. The present writ petition has been filed against the order dated 19.07.2023 (Annex.2) passed by the learned District Collector, Hanumangarh under Section 14 of the SARFAESI Act.

3. After considering the submissions of the learned counsel for the petitioners, this Court has passed a conditional order on 19.12.2023, which reads as under :-

“Heard learned counsel for the petitioners.

Issue notice. Issue notice of stay application also, returnable on 05.02.2024.

Meanwhile, effect and operation of the order dated 19.07.2023 shall remain stayed, subject to condition that petitioner deposits an amount of Rs.4,00,000/- on or before 30.01.2024.”

4. Learned counsel for the petitioners submits that the petitioners have not deposited the amount of Rs.4,00,000/- and they are not in a position to deposit the amount due to the Bank. Leaned counsel further submits that the financial condition of the petitioners is not good and therefore, they are not in a position to repay the outstanding loan amount to the respondent-Bank. He, therefore, prays that the writ petition may be allowed.

5. Learned counsel for the respondents submits that the petitioners have not complied with the interim order passed by this Court on 19.12.2023 and even after a lapse of more than one year, they have not deposited a single penny towards the loan amount. He further submits that in view of the interim order passed by this Court, the respondents have not taken recourse available under the law for recovery of the amount due. He, therefore, prays that the interim order passed by this Court on 19.12.2023 may be vacated and the writ petition itself may be dismissed.

6. I have considered the submissions made at the Bar and gone through the relevant record of the case.

7. It is an admitted fact that the petitioners had taken loan from the respondent-Bank. Since the petitioners failed to deposit the amount due to the respondent-Bank, therefore, the proceedings under the SARFAESI Act were undertaken by the respondent-Bank.

8. In pursuance of the proceedings undertaken by the respondent-Bank for recovery of the loan amount, an order dated 19.07.2023 was passed by the District Collector & District Magistrate, Hanumangarh exercising powers under Section 14 of the SARFAESI Act, against which, the present writ petition was filed. On the assurance given on behalf of the petitioners that they shall repay the amount of Rs.4,00,000/- on or before 30.01.2024 to the respondents, this Court was persuaded to pass a conditional order dated 19.12.2023 staying the effect and operation of the order dated 19.07.2023.

9. Today, on a pointed query being raised by this Court, learned counsel for the petitioners informed that the petitioners have neither paid any amount towards the dues of the respondent-Bank in pursuance of the direction issued by this Court on 19.12.2023 nor they are in a position to repay the loan amount, therefore, in the opinion of this Court, no relief can be granted to the petitioners in this writ petition.

10. Thus, the present writ petition is dismissed. The respondent- Bank is directed to recover the loan amount from the petitioners in accordance with law.

11. The stay application as well as other pending misc.applications, if any, stand disposed of accordingly.

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