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 settlement.

JUDGMENT

1. The petitioner is a defaulting loanee in a cash credit loan availed with a limit of Rs.10.00 lakhs from Urban Co-operative Bank Ltd., Chandini Chowk Evening Branch, Cuttack on 6th August, 2007. Due to default in servicing the loan account, the same was declared as NPA on 31st March, 2012 leading to issuance of a demand notice dated 6th July, 2013 under Section 13 (2) of the SARFAESI Act, 2002 recalling the outstanding liabilities of Rs.11,68.102.40. Thereafter the symbolic possession of the secured asset was assumed on 19th July, 2013.

2. By filing the present writ petition, challenge has been laid to action of the Bank to put the residential house/mortgaged property to auction for recovering the outstanding liabilities of Rs.12,18,312.40 as on 30.06.2013 together with interest, costs and incidental charges.

3. Upon willingness of the petitioner to clear the outstanding liabilities within a reasonable time, this Court on 17th February, 2022 passed the following order :

'2. It is contended that the petitioner is willing to clear the entire outstanding liability of around Rs.26,00,000/- within four months to save the only residential house being put to auction sale on 08th of March, 2022 by the Urban Cooperative Bank Limited, Cuttack/opposite party nos.1 & 2.

3. By referring to the decision dated 31st of July, 2015 (Annexure-E/1 with the counter of opposite party nos.1 and 2), it is contended that the petitioner is entitled to waiver of penal interest that would reduce the outstanding liability to around Rs.18 lakhs.

4. Learned Senior Counsel appearing for the opposite party nos.1 and 2 prays for time to place on record the computation of the outstanding amounts as on today keeping in view the aforesaid decision dated 31st of July, 2015, apart from the enforceability of the said decision till today.

5. List on 07.03.2022.

6. In the meanwhile the petitioner is directed to deposit a sum of Rs.10,00,000/- (Rupees ten lakhs) to show his bona fide which shall be kept in a no lien account.' 

It is not a disputed that a sum of Rs.10.00 lakhs stands deposited by the petitioner which has been kept in 'no lien account'. 

4. At the time of resumed hearing today, learned counsel for the petitioner has prayed for permission to withdraw the present writ petition in order to avail the benefit of an amicable settlement under a new Interim Policy finalized in the meeting held on 28th November, 2022 of the Board of Directors of the Bank, with the further prayer to direct the Bank to adjust the deposited amount of Rs.10.00 lakhs towards the requirement of deposit of upfront money under the new Interim Policy and the remaining to be adjusted towards the final settlement amount.

In response, Mr. Das, learned counsel for the Bank states that he has no objection to the withdrawal of the writ petition with the aforesaid condition, provided the required application is made by the petitioner at the earliest.

5. Learned counsel for the petitioner assures the Court that his client shall positively do the needful within two weeks from today.

6. In view of the aforesaid development, the present writ petition is permitted to be dismissed as withdrawn in terms of the aforesaid agreed terms. The amount deposited shall be released from 'no lien account' and appropriated in the aforesaid terms.