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IN THE HIGH COURT OF ORISSA AT CUTTACK
Jaswant Singh, M.S. Sahoo, JJ.
M/s. PSA Bricks, Jharsuguda & Anr. – Appellants
Versus
Regional Manager, Bank of Baroda, Kalinganagar, Bhubaneswar, Districtkhurda & Ors. – Respondents
Writ Petition (C) No. 1661 of 2023
Decided On : 02-02-2023
SARFAESI Act, 2002 - Recovery Process - Dismissal of Writ Petition
Fact of the Case:
The petitioner, a proprietorship concern, sought a direction for the bank to issue a NOC and return the title deeds, claiming to have cleared the loan accounts. The bank argued that the petition was misplaced and amounted to an abuse of the court process, stating that the outstanding liabilities had not been cleared and the property had been auctioned.
Finding of the Court:
The court dismissed the writ petition as withdrawn, as the petitioner's counsel prayed for unconditional withdrawal at the hearing.
Issues: Misplaced Writ Petition, Abuse of Court Process, Outstanding Liabilities, Property Auction
Ratio Decidendi: The court's decision was influenced by the petitioner's failure to comply with previous court orders and the bank's assertion that the outstanding liabilities had not been cleared, leading to the property being auctioned.
Final Decision: The court dismissed the writ petition as withdrawn.
JUDGMENT
1. Petitioner, a proprietorship concern of Mr. Dileswar Pradhan is facing recovery process under the SARFAESI Act, 2002 in respect of two loan accounts (a Cash Credit of Rs.2.70 Lakhs & a Term Loan of Rs.18.23 Lakhs), classified as NPAs on 27th August, 2018.
2. The prayer in the present Writ Petition is for a direction to the Bank to issue a NOC as well as return the title deeds in view of the petitioner having cleared the loan accounts since 20th November, 2021.
3. Mr. Niamati, learned counsel for the Bank appearing on advance notice submits that the present Writ Petition is not only misplaced but amounts to abuse of process of the Court. He submits that the outstanding liabilities in both the loan accounts have never been cleared by the petitioner, in fact he did not even comply with the order dated 6th September, 2019 passed by this Court in earlier W.P.(C) No.15722 of 2019 by deposit of initial money of Rs.5,49,000/- by November, 2019 so as to seek the regularization of the NPA accounts. He further submits that for the outstanding liabilities of more than Rs.21 Lakhs, the property was put to auction on 17th September, 2019 and the Sale Certificate stands issued in favour of the successful auction purchaser upon deposit of the auction price of Rs.23,90,000/- on 15.01.2020. He further points out that the petitioner had already filed an S.A. (Diary No.409 of 2021) before the DRT, Cuttack on 27th May, 2021 challenging the aforesaid proceedings.
4. At this stage, learned counsel for the petitioner prays for an unconditional withdrawal of the present Writ Petition.
Accordingly, the present Writ Petition stands dismissed as withdrawn.
Failure to comply with court orders and failure to clear outstanding liabilities can lead to dismissal of a writ petition.
Dismissal of writ petition as infructuous due to closure of loan account
The court's decision was influenced by the petitioners' unconditional withdrawal of the writ petition.
The SARFAESI Act, 2002 provides for the recovery process and issuance of demand notices for defaults in payment, and the court's decision was based on the petitioner's withdrawal of the Writ Petition....
Challenge to demand notice under SARFAESI Act not maintainable at initial stage
The court's decision was influenced by the willingness of the petitioner to fulfill the conditions for an amicable settlement and the bank's agreement to adjust the deposited amount towards the final....
Failure to comply with a sanctioned compromise proposal for depositing the balance amount within the stipulated time may result in the dismissal of a writ petition seeking extension of time for depos....
The remedy for seeking details of the loan account was available to the petitioner by making a proper application before the DRT itself.
The SARFAESI Act, 2002 does not allow a simplicitor challenge to the demand notice for outstanding liabilities.
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