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Judgment
This petition seeks quashing of proceedings initiated under the SARFAESI Act.
Case of the petitioner is that the petitioner applied for a loan of Rs. 7,42,500/- for agricultural activities. The loan was repayable in 84 monthly installments. Only a sum of Rs. 2,00,000/- was disbursed on 5.11.2007. The said amount was adjusted from another account of the petitioner. The subsidy due to the petitioner was not disbursed. The Bank recalled the loan and created a demand of Rs. 3,05,846/- on 20.4.2011. The petitioner sought adjustment of the subsidy amount which prayer was not accepted. In these circumstances, coercive measures initiated by the Bank are not justifiable. The property of value of Rs. 50,00,000/- has been mortgaged with the Bank.
We have heard learned counsel for the petitioner.
We are of the view that the objection raised by the petitioner ought to be considered by the Bank itself in the first instance. Accordingly, without expressing any opinion on merits, we direct that the Bank may not take any coercive measures against the property of the petitioner without deciding the objections raised by the petitioner in reply filed with the Bank, being Annexure-11. This will be the subject to the petitioner depositing a sum of Rs. 50,000/- (Fifty Thousand) with the Bank within two months from today to be adjusted against due of the petitioner, if any. The deposit will be will be without prejudice to right and remedies of the parties. The Bank may, before proceeding further, convey a speaking order in the matter to the petitioner.
The petition is disposed of.