Bijay Products vs. Sbi

W.P.(C) No.3108 of 2014

Present : Mr. U.C.Mohanty, Advocate for the petitioner.

2. 18.02.2014 This petition seeks direction against initiation of coercive measures by the Bank for recovery of loan under the provisions of the SARFAESI Act, 2002.

Learned counsel for the petitioner submits that the petitioner is willing to repay the loan subject to decision of his application to the Bank for grant of time and extending benefit under the One Time Settlement Scheme, if applicable. Learned counsel further states that the petitioner is willing to pay a sum of Rs.4,00,000/- (Rupees Four Lakhs) within two months from today along with the proposal for repayment for consideration of the Bank.

Without expressing any opinion on merits, we direct that if the petitioner makes deposit as aforesaid and files an application for consideration of the Bank, the Bank may take decision thereon in accordance with law within one month and, till such decision is taken, the Bank may not take coercive measures.

The petition is disposed of.

It is made clear that if the petitioner defaults in making the deposit, this petition will be treated to have been dismissed. It is further made clear that if the Bank is aggrieved by this order, it will be at liberty to move this Court.

In view of the above, the lock which is said to have been put on the house of the petitioner may be immediately opened without prejudice to action in accordance with law being taken on failure of the petitioner to act in terms of above order. The petitioner will not create any third party interest.

……......……………… A.K.Goel, C.J.

……………………….. Dr A.K.Rath, J.

PKS/CRB