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Karnataka High Court

M/S Anirudh Agency vs The Authorised Officer And Ors on 11 August, 2021

Author: Nataraj Rangaswamy

Bench: Nataraj Rangaswamy

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         IN THE HIGH COURT OF KARNATAKA
                KALABURAGI BENCH
      DATED THIS THE 11TH DAY OF AUGUST, 2021
                       BEFORE
 THE HON'BLE MR.JUSTICE NATARAJ RANGASWAMY
      WRIT PETITION No.201327/2021 (GM-RES)
BETWEEN:
M/S. ANIRUDH AGENCY
REP. BY ITS PROPRIETOR
SRI MAHARUDRAPPA
S/O: LATE SIDDALINGAPPA
AGE: 38 YEARS
R/O: NO.E/83/3, MAIN ROAD,
NEAR INGINSHETTY BUILDING
SHAHABAD, DIST: KALABURGI-585 228.
                                      ... PETITIONER
(BY SMT. RATNA N. SHIVAYOGIMATH, ADVOCATE)
AND:
01.    THE AUTHORIZED OFFICER
       STATE BANK OF INDIA
       HKCCI BUILDING
       BEHIND POLICE STATION, SUPER MARKET,
       KALABURAGI - 585 101.

02.    THE DEPUTY COMMISSIONER AND
       JUDICIAL MAGISTRATE, KALABURAGI
       DIST: KALABURAGI-585 101.
03.    THE TAHSILDAR
       SHAHABAD, DIST: KALABURAGI - 585 228.

                                   ... RESPONDENTS

(BY SRI. MANVENDRA REDDY, ADVOCATE FOR R1
SMT. ANURADHA M. DESAI, PGA FOR R2 AND R3)
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      THIS WRIT PETITION IS FILED UNDER ARTICLES
226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING
TO (A) ISSUE WRIT OR ORDER, WRIT IN THE NATURE OF
CERTIORARI, QUASHING THE IMPUGNED ORDER DATED
02.O7.2021      IN      NO.KANDAYA/DCB/08/2021-22/1486,
ISSUED BY RESPONDENT NO.2, VIDE ANNEXURE-G AND
CONSEQUENTIAL           ORDER       DATED     07.07.2021     IN
NO.SAM/KAM/D.CB/5/2021-22            VIDE   ANNEXURE-H,      (B)
ISSUE WRIT OR ORDER, WRIT IN THE NATURE OF
MANDAMUS DIRECTING THE RESPONDENTS NOT TO TAKE
ANY ACTION TILL RESTORATION OF S.A.NO.355/2018
AND ETC.,
     THIS PETITION COMING ON FOR HEARING -
INTERLOCUTORY APPLICATION THIS DAY, THE COURT
MADE THE FOLLOWING:-

                           ORDER

This writ petition is filed to issue writ in the nature of certiorari quashing the official memorandum dated 07.07.2021 issued by the respondent No.3 (Annexure-H) in terms of which the possession of the property of the petitioner was taken over in exercise of power under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short SARFAESI Act).

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02. It was stated before the Court that a one time settlement was proposed by the respondent - bank, but the same could not be complied due to the Covid-19 pandemic. The petitioner therefore offered to pay the entire amount claimed by the respondent - bank. In those circumstances, this court passed an interim order dated 27.07.2021 directing the petitioner to deposit a sum of Rs.20,31,006/- within 15 days. The learned counsel for the petitioner has deposited a sum of Rs.20,31,006/- before the respondent - bank as directed by this Court. In view of the fact that the entire amount is deposited in the bank, the bank is not interested to pursue to the proceedings under the SARFAESI Act.

In that view of the closure of the dispute between the petitioner and respondent, this writ petition is allowed. The impugned order passed by the respondent No.3 under Section 14 of the SARFAESI Act, 2002 is set-aside. The possession of the property shall be delivered back to the petitioner within 07 days from the date of this order. 4

The respondent - bank is at liberty to appropriate the amount of Rs.20,31,006/- deposited by the petitioner towards loan account. If any amount is outstanding the respondent - bank is at liberty to proceed against the petitioner.

In view of the disposal of writ petition, I.A.No.2/2021 for additional documents, does not survive for consideration and same is dismissed.

Sd/-

JUDGE KJJ