M/S Shiva Industries & Anr. v. State of U.P & Anr.

#1. Heard Sri Rajesh Kumar Dubey, learned counsel for the petitioner; Sri Ramesh Kumar Shukla, learned counsel for the respondent bank and learned Standing Counsel for the State respondent.

#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.

#3. At the outset, petitioner has offered to pay the outstanding amount Rs. 8,78,58,441.32/- together with entire interest due, within a period of six months. This offer has been accepted by learned counsel for the respondent - Bank.

#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 six months i.e. not later than 30.04.2026. (ii) In discharge of dues, the petitioner shall deposit, by way of first installment, a sum of Rs. 2,25,00,000/- with the respondent - Bank, on or before 31 October 2025. (iii) Upon deposit of Rs. 2,25,00,000/- by the petitioner, the respondent - Bank shall immediately communicate to the petitioner the exact amount 2 WRIC No. 33255 of 2025 being claimed from him including interest computation upto March, 2026 (on reducing balance). (iv) Petitioner shall thereafter deposit two installments of Rs. 2,25,00,000/- each payable on or before 31 December 2025 & 28 February 2026. (v) The remaining amount together with interest claimed by the respondent - Bank may be paid, by way of last installment, on or before 30 April 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 disturbed.

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

#7. Subject to the above payment being made (as proposed) and subject to the petitioner withdrawing from the civil suit being O.S. No. 720 of 2025 instituted in the Court of Civil Judge (Sr. Div.), Gorakhpur, no other or further dispute would survive between the parties with respect to the disputed demand. However, 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. Subject to full compliance being made by the petitioner to the terms of this order, no further amount can be recovered from the petitioner either by way of legal expense and other charges as the entire amount has been paid under the directions issued under Article 226 of the Constitution of India. October 6, 2025 Abhilash (Indrajeet Shukla,J.) (Saumitra Dayal Singh,J.) ABHILASH SINGH High Court of Judicature at Allahabad