MANSOOR ANSARI ASHRAFI Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) THE petitioner is aggrieved by a Sec. 13 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) notice issued by the Central Bank of India, Boring Road Branch, Patna. The notice is for an amount of Rs. 17,57, 114.00 as on 5.12.2006. By the said notice, action has been proposed in respect of three shops belonging to the petitioner being Shop No. 2A, 2 situated at ground floor, Rani Plaza, Exhibition Road, Patna and Shop No. 21 at Rani Apartment, Exhibition Road, Patna. Petitioner initially complained that all the three shops, with the stocks therein, had been sealed by the authorities. Petitioner submitted that in view of the valuation report, the valuation of the three shops itself, as valued by the bank 'svaluer, was about Rs. 90 lacs. Apart from that both had huge stocks of motor parts etc. This was an arbitrary action of the bank considering the outstanding being only about Rs. 17 lacs.

(2.) THIS Court asked the respondent -Bank to take instructions in the matter. Bank has filed a counter affidavit today and pointed out that it is wrong to say that the valuation report is as what petitioner states because now with the overbridge being constructed at Exhibition Road, values have depreciated of certain shops including the petitioner. It is further stated that it is only the two shops at Rani Plaza which had been seized and that too because though technically these are two shops, they are incorporated into one. So far as the shop at Rani Apartment is concerned, authorities have not taken any action against that as yet. Petitioner stated then that he is anxious to liquidate the dues provided he is given time. Petitioner further states that the stocks in the shop itself are sufficient if opportunity is given to sell the same to liquidate the entire dues. Considering the matter, the petitioner has lastly offered that if sufficient time is given by this Court, he undertakes to liquidate the dues in entirety. Considering the matter, I direct as under: (1) On petitioner 'sundertaking to this Court as being made and on petitioner 'sdepositing Rs. 5 lacs with the bank, bank would open the shops and release the goods. (2) On the shop being opened and stocks released within one month (30 days thereafter), the petitioner would deposit another five lacs. (3) Within thirty days thereafter, he would deposit another five lacs. That would mean payment of Rs. 15 lacs within two months of the unsealing of the shop. (4) The balance after payment of this fifteen lacs with accrued interest balance of the outstanding alongwith accrued interest, up -to -date would then be paid in the next thirty days.

(3.) TO illustrate, if the first five lacs is deposited on the 31st of January, 2008, the shop premises with the goods will be released. The next five lacs will be deposited within thirty days that is by the 3rd of March, 2008, the next installment would be on the 3rd of April, 2008 and the last clearing dues would be paid on 3rd of May, 2008. All depends on when the first installment is paid. However, the petitioner has to clear the entire dues by 30th of June, 2008.