P.Ramanathan v. The Branch Manager

O R D E R [Order of the Court was made by S.S.SUNDAR, J.] Mr.N.Dilip Kumar, learned Standing Counsel, takes notice for the respondent – Bank.

¶2With the consent of both sides, this writ petition is taken up for final hearing at the admission stage itself.

¶3Challenging the e-auction sale notice, dated 01.08.2023, issued by the respondent – Bank, this writ petition is filed by the borrower.

¶4The total liability as on date appears to be a sum of Rs.14,43,000/- (Rupees fourteen lakhs and forty three thousand only). As per the sale notice, auction is scheduled to be held today.

¶5Learned counsel for the petitioner states that the petitioner is prepared to pay not less than 25% of the money due as outstanding as on date. He also states that the petitioner may be permitted to approach the respondent – Bank for one time settlement or for re-scheduling the entire loan or for other concessions, as may be permissible under the Guidelines of Reserve Bank of India or the norms applicable to the respondent – Bank.

¶6In such circumstances, on the undertaking given by the learned counsel for the petitioner that the petitioner will make payment not less than 25% of the amount due as outstanding as on date and having regard to the circumstances pointed out by the petitioner for his default in making payment towards the loan, this Court is inclined to entertain this writ petition.

¶7Considering the above, this writ petition is disposed of with the following directions:

(i) Auction, as scheduled, shall go on. However, the respondents are directed not to confirm the sale for a period of four weeks from today.

(ii) The petitioner shall pay a sum of Rs.4,00,000/- (Rupees four lakhs only) to the respondent – Bank, on or before 19.09.2023.

(iii) If the petitioner is unable to pay the amount within the time stipulated, the respondent – Bank shall proceed with the sale in the manner known to law.

(iv) In case the petitioner makes payment, as required under this order, the respondent – Bank shall drop the sale as per the impugned sale notice.

(v) On making such payment, the petitioner is permitted to approach the respondent – Bank and submit a representation, either for waiver of penal interest or for One Time Settlement or for restructuring the loan or for any other concession, as may be permissible under the guidelines of Reserve Bank of India or the norms applicable to the respondent – Bank.

(vi) The respondent – Bank shall consider the same and pass appropriate orders in accordance with law.

(vii) Till such time an order is passed on the representation of the petitioner and the same is communicated to him, the respondent - Bank shall not initiate any coercive action against the petitioner.

(viii) No costs. Consequently, connected miscellaneous petition is closed.

[S.S.S.R., J.] [D.B.C., J.]

22.08.2023 NCC : Index : Internet :

krk S.S.SUNDAR , J . and D.BHARATHA CHAKRAVARTHY , J . krk and W.M.P.(MD) No.16882 of 2023

22.08.2023

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 22.08.2023 CORAM: THE HONOURABLE MR.JUSTICE S.S.SUNDAR and THE HONOURABLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY and W.M.P.(MD) No.16882 of 2023 P.Ramanathan ... Petitioner -vs- 1.The Branch Manager Indian Overseas Bank Thiruvathavoor Branch Melur Taluk Madurai District-625 110 2.The Authorized Officer Indian Overseas Bank Regional Office Madurai Plot No.40, Eighty Feet Road Arignar Anna Nagar Madurai-625 020 ... Respondents PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a writ of certiorari calling for the entire records pertaining to the E-auction sale notice issued by the second respondent vide his proceedings in RO/SAMD/SAR/22-2023-24, dated 01.08.2023 and quash the same. For Petitioner : Mr.S.Balaji For Respondents : Mr.N.Dilip Kumar Standing Counsel