Gangajal Enterprises v. State Of U.P. And 2 Other

#1. Heard Sri Amit Kumar Tiwari holding brief of learned counsel for the petitioner, learned Standing Counsel for the State and Sri Amrish Sahai learned counsel for the bank.

#2. Petitioner has committed default in repayment of secured debt to the respondent-Bank. Bank has initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. However, no auction has taken place and third party rights have not intervened.

#3. At the outset, petitioner has offered to pay the outstanding amount Rs. 19,26,188.40 /- together with entire interest due, within a period of 05 months. This offer has been accepted by learned counsel for the respondent - Bank. However, learned counsel for the bank states that the auction is proposed to be held on 17.11.2025.

#4. Accordingly, the writ petition is disposed of with the following directions: (i) The petitioner shall clear the entire arrears due, within a period of 05 months i.e. not later than 15.03.2026 . (ii) In discharge of dues, the petitioner shall deposit, by way of first installment, a sum of Rs. 9,26,190/- with the respondent - Bank, on or before 14 November 2025. 2 WRIC No. 36998 of 2025 (iii) Upon deposit of Rs. 9,26,190 /- by the petitioner, the respondent - Bank shall immediately communicate to the petitioner the exact amount being claimed from him including interest computation up to February 2026 (on reducing balance). (iv) Petitioner shall thereafter deposit the remaining amount in two equal installments of Rs. 500,000 /- each payable on or before 15 January 2026 and 15 March 2026 respectively. (v) The amount of interest being claimed by the respondent - Bank may be paid, by way of last installment, on or before 15.3.2026.

#5. Subject to the continued compliance of the order being made by the petitioner, the auction proceedings may be kept in abeyance so however that the attachment shall continue but the secured asset may not be auctioned and physical possession may not be altered.

#6. Any amount that may have been deposited by the petitioner pursuant to the impugned demand notice, may be adjusted against the deposit to be made under this order.

#7. In case of default of any of the conditions as mentioned above, the present order shall stand automatically vacated and recovery proceedings shall revive from that stage.

#8. Petitioner undertakes to abide by the terms of this order and not to press his objections and statutory proceedings under the SARFAESI Act. October 29, 2025 Faraz (Indrajeet Shukla,J.) (Saumitra Dayal Singh,J.)