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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Manoj Kumar Tiwari, J.
M/s King Radiant (india) Suppliers Pvt. Ltd. & Anr. - Appellants
Versus
Punjab National Bank & Anr. - Respondents
Writ Petition (M/S) No. 2762 of 2021
Decided On : 21-12-2021
SARFAESI Act - Borrower's Right to Sell Secured Assets - The court held that the relief of selling the secured assets cannot be granted in a writ petition, but allowed the petitioner to approach the Competent Authority in the bank to make a representation for selling the property to repay the loan.
Fact of the Case:
The petitioner, a borrower, defaulted in loan repayment, and the lending bank initiated proceedings under SARFAESI Act. The petitioner sought permission to sell the secured assets to repay the loan.
Finding of the Court:
The court disposed of the writ petition, allowing the petitioner to approach the Competent Authority in the bank to make a representation for selling the property to repay the loan.
Issues: Default in loan repayment, relief sought by the petitioner to sell secured assets, jurisdiction of the court in granting such relief.
Ratio Decidendi: The court cannot grant the relief of selling secured assets in a writ petition, but the petitioner was allowed to approach the Competent Authority in the bank to make a representation for selling the property to repay the loan.
Final Decision: The writ petition was disposed of with liberty to the petitioner to approach the Competent Authority in the bank to make a representation for selling the property to repay the loan.
JUDGMENT
Manoj Kumar Tiwari, J. - Petitioner is a borrower, who defaulted in re-payment of the loan, therefore, the lending bank has initiated proceeding against him under SARFAESI Act.
2. A notice under Section 13(4) of the aforesaid Act was issued against the petitioner, which was set aside by Debts Recovery Tribunal, Dehradun vide order dated 18.02.2021. According to the petitioner, he has some prospective buyers, who are offering good price for the secured assets, therefore, he wants that he may be permitted by the lending bank to sell the property, so that he may re-pay the loan.
3. Such a relief cannot be granted in a writ petition, however, having regard to the facts & circumstances of the case, the writ petition is disposed of with liberty to petitioner to approach the Competent Authority in the respondent-bank by making a representation. If petitioner makes such representation within one week from today, then the Competent Authority in the Bank shall consider the same and take appropriate decision thereupon, in accordance with law, within two weeks from the date of receipt of representation alongwith certified copy of this order.
4. Let a certified copy of this order be issued within 24 hours.
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