Judgment · High Court · 2011
Case at a glance
- Order date
- 14 Jun 2011
- Bench
- GHULAM MOHAMMED, K G SHANKAR
Outcome
Disposed of
Accordingly, this writ petition is disposed of with a
Provisions considered
Judgment
(Per Sri Hon’ble Sri Justice Ghulam Mohammed) Assailing the action of the respondent in invoking the provisions of Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the SARFAESI Act’), the petitioner filed the present writ petition. The petitioner, which is an industry engaged in the business of manufacturing of chilli and masala powders availed Open Cash Credit (O.C.C.) facility from the respondent-bank on
14.9.2005 to an extent of Rs.9,00,000/-. Petitioner states that it was regularly maintaining the credit facility, but, due to fluctuations in the market conditions, it could not maintain the same and it therefore, requested the respondent-bank to provide additional financial facility, which was refused by the respondent-bank. Thereafter, the respondent-bank issued a notice dated 24.7.2010 to the petitioner under Section 13(2) of SARFAESI Act demanding repayment of the amount of Rs. 12,39,759/-, failing which, it was informed that coercive steps will be taken against it. Pursuant to which, the petitioner submitted a representation on 29.7.2010 to the respondent- bank to furnish the statement of loan account and also made certain payments thereafter. In the meantime, the respondent- bank issued the impugned possession notice dated 5.2.2011 on 8.3.2011 stating that in exercise of the powers conferred on it under Section 13 (2) of SARFAESI Act read with Rule 2 of the Security interest (Enforcement) Rules, 2002, it has taken possession of the property mentioned in the said notice.
Operative part
Aggrieved by the said notice, the petitioner filed the present writ petition. This court, while admitting the writ petition on 28.3.2011, granted interim stay of the impugned possession notice subject to the condition of the petitioner depositing Rs.5,00,000/- within period of three weeks. Today, when the matter came up for hearing, learned counsel for the petitioner has submitted that in compliance of the of the aforesaid interim order, the petitioner has paid an amount of Rs.5.00 lakhs and if some more time is granted to him, he would remaining loan amount of Rs.5,20,000/- also. In view of the fact that the petitioner has paid an amount of Rs.5.00 lakhs as directed by this Court, we deem it appropriate to grant one month time to the petitioner to clear off the remaining loan amount. Accordingly, this writ petition is disposed of with a direction to the petitioner to pay the remaining loan amount of Rs.5,20,000/- (Rupees Five Lakhs Twenty Thousand Only) within a period of one month from today, failing which, the respondent-bank is at liberty to proceed against the petitioner for recovery of the loan amount. No costs. _______________________ GHULAM MOHAMMED,J _______________ K.G. SHANKAR,J DATE: 14.6.2011 Note: Furnish c.c. in three days. B/o
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: Accordingly, this writ petition is disposed of with a
Which statutory provisions did this judgment involve?
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Which court decided this case, and when?
Andhra Pradesh High Court, on 14 Jun 2011. The bench was GHULAM MOHAMMED, K G SHANKAR.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.