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2023 Supreme(Ori) 84
IN THE HIGH COURT OF ORISSA AT CUTTACK
Jaswant Singh, M. S. Sahoo, JJ.
Trilochan Nayak – Appellant
Versus
Union of India, Reserve Bank of India, New Delhi, India & Ors. – Respondents
Writ Petition (C) No. 334 of 2023
Decided On : 10-01-2023
Santosh Kumar Samantaraya, Advocate
The court's decision was based on the principle that the initiation of negotiation for an amicable settlement rendered the Writ Petition challenging the e-auction Sale Notice infructuous.
Headnote:
Guarantor - SARFAESI Act - The court dismissed the Writ Petition challenging the e-auction Sale Notice for the mortgaged property, as it was rendered infructuous due to the failure of the auction and initiation of negotiation for an amicable settlement.
Fact of the Case:
The petitioner, a guarantor, challenged the e-auction Sale Notice for the mortgaged property due to non-servicing of loan accounts, which were classified as NPA.
Finding of the Court:
The court dismissed the Writ Petition as infructuous due to the failure of the auction and initiation of negotiation for an amicable settlement.
Issues: Challenge to e-auction Sale Notice, non-servicing of loan accounts, classification as NPA.
Ratio Decidendi: The court's decision was influenced by the failure of the auction and the initiation of negotiation for an amicable settlement, rendering the Writ Petition infructuous.
Final Decision: The Writ Petition stands dismissed as infructuous.
JUDGMENT
1. Petitioner is a guarantor of a Cash Credit facility with the limit of Rs.25 lakhs, one Working Capital Term Loan of Rs.5 Lakhs and one Term Loan (IND-GECLS-COVID-19) of Rs.4.90 availed by his brother Brundaban Nayak, proprietor of M/s. Mahavir Kissan Seva Kendra in the month of February, 2016 from Indian Bank, Astaranga Banch, District-Puri. Due to non-servicing of the loan accounts, the same were classified as NPA on 30th April, 2021 leading to issuance of a Demand Notice dated 11th October, 2021 issued under Section 13(2) of the SARFAESI Act, 2002 recalling an aggregate outstanding liabilities of Rs.33,85,308.17/- due as on the said date together with future interest, incidental expenses and costs etc.
2. The challenge in the present Writ Petition is to the e-auction Sale Notice dated 5th December, 2022 fixing the auction sale of the mortgaged property offered as collateral security on 9th January, 2023.
3. At the time of hearing, upon instructions from the petitioner, learned counsel for the petitioner prays for disposing the present Writ Petition as infructuous in view of the e-auction fixed for the said date having failed for want of any intending bidders as also negotiation for an amicable settlement having been initiated.
4. In view of the above, the present Writ Petition stands dismissed as infructuous.
