Shivanna A P & Others vs Tumkur Grain Merchants Co-Operative Bank Ltd., Represented By Its Authorized Officer/Manager, Registered Under Co-Operative Societies Act, Admin Office, B H Road, Tumkur - 572103

Krishna S Dixit, J

The challenge is to the coercive proceedings of recovery. Some reprieve was granted by this Court vide order dated 14.07.2023 and it was continued later with arguably some modification.

Both the counsel appearing for the parties after arguing the matter for some time fairly submits that some arrangement for granting reprieve/regularization in respect of bank account in question can be considered in accordance with extant policy of RBI guidelines. In fact, the learned panel counsel appearing for the Bank standing tall & fair submits that if the requisite amount is paid, the account in question can be regularized, provided that the Court prescribes a specific time line for making such payment. With this proposal, the learned counsel for the borrowers is also agreeable. Therefore, nothing more survives for consideration.

In the above circumstances, this Writ petition is disposed off, requesting the respondent-Bank to regularize the account in question as is undertaken before this Court, should the petitioners make payment of the requisite sum in that connection within a period of six weeks; half of that be paid in the first three weeks and the remainder in the weeks next following, failing which the impugned coercive proceedings shall stand revived and that the Respondent-bank can take all action for the recovery of outstanding debts.

This order shall not come in the way of Bank considering the request of the petitioners for restructuring of the loan itself, if it is in accordance with the extant guidelines.

Ordered accordingly.