Gujarat HC Restrains Bank From Dispossessing Family Till Filing Of Proceedings Under SARFAESI Act, Subject To Deposit Of ₹20L

Considering that the Appellants were ready and willing to deposit INR 20 lacs and the fact that the property which was likely to be auctioned was residential premises wherein two families were residing, the Gujarat High Court has directed that the Respondent-Bank to not dispossess the family from the property until 11th March 2022. The Bench comprising Justice AJ Desai was hearing an appeal under Clause 15 of Letters Patent which sought relief from dispossession of property which was going to be auctioned. The Appellants were the owners of the property and were residing on it with their wives and family members. It was contended that if they were deprived of this property, they would be exposed to great hardship. Further, they were willing to deposit an amount of INR 20 lacs to the Respondent-Bank by 14th February 2022.A further averment was that since the alternative remedy is available under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act, the Appellants will approach the relevant authority under the Act as early as possible. They will also seek interim relief from the Authority. However, before the High Court Bench, they required a stay on dispossession of property. Justice Desai took into cognizance their willingness to pay INR 20 lacs as deposit and noted that residential nature of property and accordingly directed that the Appellants and their partners file an undertaking before the Court affirming that they will abide by the observations of the Court and deposit the aforesaid sum. Further, they shall undertake appropriate proceedings under Section 17 of the SARFAESI Act no later than 4th March 2022 and that the Respondents shall not dispossess the Appellants from their property till then. The Court cautioned that if the amount was not deposited, the interim relief granted by the High Court would stand vacated and that the authority under SARFAESI Act will deal with the issue expeditiously. Accordingly, the appeal was disposed of. Case Title: RAJUBHAI KANUBHAI BHARWAD Versus SOUTH INDIAN BANK Citation: 2022 LiveLaw (Guj) 43 Case No.: C/LPA/186/2022 Click Here To Read/Download Order

Gujarat HC Restrains Bank From Dispossessing Family Till Filing Of Proceedings Under SARFAESI Act, Subject To Deposit Of ₹20L

PRIYANKA PREET

Tags