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2022 Supreme(Ori) 594
IN THE HIGH COURT OF ORISSA AT CUTTACK
Jaswant Singh, M.S. Sahoo, JJ.
Rajendra Kumar Arukha – Appellant
Versus
Union Bank of India & Ors. – Respondents
Writ Petition (C) No. 41221 of 2021
Decided On : 08-12-2022
Anup Udaya Senapati, Advocate, Rashmikanta Acharya, Advocate, Amiya Kumar Mishra 2, Advocate
The court's decision was influenced by the provisions of the SARFAESI Act, 2002, specifically Section 13(4), which allowed for the upgrade of the loan account to a standard account upon the deposit of the required amount.
Headnote:
SARFAESI Act - Home Loan - Challenge to Notice under Section 13(4)
Fact of the Case:
The petitioner, a defaulting borrower of a Home Loan, challenged a notice issued under Section 13(4) of the SARFAESI Act, 2002, assuming symbolic possession of the mortgaged residential house.
Finding of the Court:
The court found that the Writ Petition had become infructuous as the loan account had been upgraded to a standard account upon the deposit of the required amount.
Issues: Challenge to notice under Section 13(4) of the SARFAESI Act, 2002
Ratio Decidendi: The court dismissed the Writ Petition as infructuous due to the upgrade of the loan account to a standard account.
Final Decision: The Writ Petition was dismissed as infructuous.
JUDGMENT
1. The petitioner is a defaulting borrower of a Home Loan and has laid challenge to the notice dated 27th October, 2021 (Annexure-1) issued under Section 13(4) of the SARFAESI Act, 2002 assuming symbolic possession of the mortgaged residential house.
2. The limited prayer of the petitioner was to permit the petitioner to deposit the overdue amounts so as to upgrade the loan account to a standard account.
3. At the time of hearing, learned counsel for the Bank states that the present Writ Petition has become infructuous as upon the deposit of the required amount, the said loan account classified as NPA has since been upgraded to a standard account. In response, learned counsel for the petitioner concedes that the present Writ Petition has become infructuous.
4. In view of the above, the Writ Petition is dismissed as infructuous.
