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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Manoj Kumar Tiwari, J.
Anil Kumar - Appellant
Versus
Kotak Mahindra Bank Ltd. & Anr. - Respondents
Writ Petition (M/S) No. 2856 of 2021
Decided On : 29-12-2021
SARFAESI Act - Loan Recovery - The court disposed of the writ petition with liberty to the petitioner to approach the Competent Authority in the Bank by making a representation and depositing a sum of ?50,000/-, with the representation to show his bonafide. The Competent Authority in the Bank shall look into the matter and take appropriate decision within a period of two weeks from the date of receipt of such representation. For a period of three weeks’ or till decision is taken on petitioner’s representation, whichever is earlier, status quo qua secured asset of the petitioner shall be maintained.
Fact of the Case:
Petitioner defaulted in repayment of a commercial loan, and the respondent initiated recovery proceedings under the SARFAESI Act. The petitioner sought one-time settlement of the loan, which was agreed upon by the Competent Authority in the bank, but the respondent took possession of the secured asset.
Finding of the Court:
The court disposed of the writ petition with liberty to the petitioner to approach the Competent Authority in the Bank by making a representation and depositing a sum of ?50,000/-, with the representation to show his bonafide. The Competent Authority in the Bank shall look into the matter and take appropriate decision within a period of two weeks from the date of receipt of such representation. For a period of three weeks’ or till decision is taken on petitioner’s representation, whichever is earlier, status quo qua secured asset of the petitioner shall be maintained.
Issues: Default in loan repayment, initiation of recovery proceedings, one-time settlement agreement, and possession of secured asset.
Ratio Decidendi: The court allowed the petitioner to approach the Competent Authority in the Bank for a decision on the one-time settlement agreement and maintenance of status quo on the secured asset.
Final Decision: The writ petition was disposed of with liberty to the petitioner to approach the Competent Authority in the Bank and maintain status quo on the secured asset.
JUDGMENT
Manoj Kumar Tiwari, J. - Petitioner took a commercial loan of Rs. 7.46 lakh from City Financial Consumer India Ltd. (Respondent No. 2) in the year 2007, which was subsequently assigned by lender bank to Kotak Mahindra Bank Ltd. (Respondent No. 1). Since petitioner defaulted in repayment of loan, therefore, respondent no. 1 has initiated recovery proceedings by invoking provision of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short "SARFAESI Act"). Thus, feeling aggrieved, petitioner has approached this Court.
2. Mr. Siddhartha Sah, learned counsel appearing for the petitioner submits that petitioner has filed a securitization application before Debts Recovery Tribunal, Dehradun, but on account of vacancy on the post of Presiding Officer, no order has been passed on his application. He further submits that in the month of August, 2021, Competent Authority in the Kotak Mahindra Bank Ltd. had agreed for one time settlement of the loan for `9.00 lakh, but now respondent no. 1 has taken possession of the secured asset on 13.12.2021.
3. Learned counsel for the petitioner submits that petitioner is ready and willing to pay the amount as per the one time settlement arrived with Kotak Mahindra Bank Ltd. in the month August, 2021.
4. This Court cannot go into this issue raised by petitioner’s counsel, however, having regard to the facts and circumstances of the case, the writ petition is disposed of with liberty to petitioner to approach the Competent Authority in the Bank (Kotak Mahindra Bank Ltd.) by making a representation, within one week from today. He shall also deposit a sum of ?50,000/-, with the representation to show his bonafide. If such representation is made within stipulated time, the Competent Authority in the Bank shall look into the matter and take appropriate decision, in accordance with law, within a period of two weeks from the date of receipt of such representation. For a period of three weeks’ or till decision is taken on petitioner’s representation, whichever is earlier, status quo qua secured asset of the petitioner shall be maintained.
5. Let certified copy of this order be supplied to learned counsel for the petitioner today itself.
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