Patna High Court - Orders
Jageshwari Memorial Institute Of ... vs Allahabad Bank on 27 February, 2020
Author: Ashutosh Kumar
Bench: Ashutosh Kumar
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4489 of 2020
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Jageshwari Memorial Institute of Speech and Hearing
... ... Petitioner/s
Versus
Allahabad Bank
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. P.N. Shahi, Sr. Advocate
Mr. Nilanjan Chatterjee, Advocate
For the Respondent/s : Mr. Bimlendu Mishra, Advocate
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CORAM: HONOURABLE MR. JUSTICE ASHUTOSH KUMAR
ORAL ORDER
2 27-02-2020The petitioner No. 1 which is a registered Society and petitioner Nos. 2 to 10 who are its members have approached this Court for setting aside the entire SARFAESI proceedings as also for staying the sale of the up-till now constructed hospital along with the land appertinent thereto for recovery of the loan amount of the Allahabad Bank.
The petitioners were sanctioned loan for setting up a 300 bedded multi specialty hospital along with medical college. A loan amount of rupees 14.08 crores was sanctioned and the ratio of investment was settled at 53:47.
Patna High Court CWJC No.4489 of 2020(2) dt.27-02-2020 2/4 It is the case of the petitioners that by garnering all its funds including that of the members who had mortgaged their personal properties, 47 percent of the entire expenses were spent.
In any view of the matter, the loan went bad and a SARFAESI proceeding was initiated against the petitioners. A notice was served to the petitioners under Section 13(2) of the SARFAESI Act which was replied by the petitioners. The reply was also responded to but during the pendency of the proceedings, an offer for one time settlement (OTS) was made.
Mr. P.N. Shahi, learned senior advocate for the petitioners contends that the offer by the petitioners was of rupees 10 crores which was enhanced to rupees 12 crores, which statement appears to have been refuted by the respondent/Allahabad Bank which claims that the offer was for rupees 18.30 crores.
Another fact, which has been brought to the notice of this Court, is that rupees 10 crores has already Patna High Court CWJC No.4489 of 2020(2) dt.27-02-2020 3/4 been deposited. For the rest of the amount, again a proceeding has been initiated and straightaway, a notice under Section 13(4) of the SARFAESI Act has been served upon the petitioners.
This Court has also been taken through a proceeding brought about by the members of the petitioner No. 1 when their agricultural land was also sought to be attached/sold for amortizing the loan.
However, this Court did not consider the aforesaid objection on the ground that notwithstanding the legal position that an agricultural land can not be used as a collateral security, it was offered by the petitioners and accepted by the Bank.
In any view of the matter, the urgency shown by the learned counsel for the petitioners for this case to be heard out of turn is the auction sale notice intimating that the property in question shall be sold on 28 th of February, 2020.
On such mentioning by the learned counsel, this Patna High Court CWJC No.4489 of 2020(2) dt.27-02-2020 4/4 Court has proceeded to hear the matter after seeking the presence of one of the panel advocates of Allahabad Bank.
Mr. Bimlendu Mishra, learned panel advocate for Allahabad Bank submits that he has no written information or instructions in the matter but he shall surely get instructions by the next date.
Considering the urgency of the matter, re-notify on 3rd of March, 2020.
Mr. Shahi, learned senior advocate has submitted that the option of approaching the DRT has not remained as efficacious for the reason that Patna Bench of the DRT is vacant and it is only on few days that a Bench of Kolkata DRT functions at Patna.
Till the next date, the property shall not be auctioned/sold.
(Ashutosh Kumar, J) Shageer/-
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