Authority: Uttarakhand High Court, Hon'ble Manoj Kumar Tiwari, J
Order Date:
Case Overview
- Petitioner: M/s Amrit Cloth House (proprietor) vs Respondent: Punjab & Sindh Bank.
- Petitioner obtained a cash credit limit of ₹13.00 lakh in 2013 from the bank’s Sitarganj branch; default led the bank to invoke SARFAESI Act Section 13(2) for recovery.
- An earlier High Court order dated 09.03.2018 stayed further recovery pending the petitioner’s deposit of ₹3.00 lakh, which was complied with.
- The bank subsequently issued another SARFAESI notice, alleging outstanding dues of ₹13,74,696.77 as on 31.08.2026, together with recovery charges; the petitioner had paid only ₹5,000 after the account was declared NPA on 22.04.2026.
- The petitioner expressed readiness to submit a one‑time settlement proposal; the bank indicated that its Competent Authority would consider the proposal sympathetically within ten days of receipt.
Final Outcome
- The writ petition is disposed; the petitioner may submit a one‑time settlement proposal to the bank’s Competent Authority within one week.
- The Competent Authority shall decide on the proposal within ten days of receiving it.
- No coercive action shall be taken against the petitioner for a period of three weeks or until the decision is taken, whichever is earlier.
- The bank may resume appropriate legal action once the decision on the proposal is made.
Topics: SARFAESI Recovery, Bank Settlement, High Court Order