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M/S Oasis Distributors vs The Authorized Officer/ Chief ...
2023 Latest Caselaw 5528 Kant

Citation : 2023 Latest Caselaw 5528 Kant
Judgement Date : 11 August, 2023

Karnataka High Court
M/S Oasis Distributors vs The Authorized Officer/ Chief ... on 11 August, 2023
Bench: Krishna S.Dixit
                                            -1-
                                                          NC: 2023:KHC:28615
                                                        WP No. 15334 of 2023




                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                       DATED THIS THE 11TH DAY OF AUGUST, 2023

                                          BEFORE

                       THE HON'BLE MR JUSTICE KRISHNA S DIXIT

                      WRIT PETITION NO. 15334 OF 2023 (GM-RES)

                   BETWEEN:

                   1. M/S OASIS DISTRIBUTORS
                      REPRESENTED BY PROPRIETOR,
                      MR T S ZAFULLA, S/O MR T S BUDAN BASHA,
                      (SINCE KAMARUNNISA EXPIRED ON 02-02-2019)
                      T S GARDEN, BEHIND SUPER BAZAR,
                      UDUPI 576 101.

                   2. MR. T S BUDAN BASHA
                      S/O MR T S ABDUL RAHIMAN,
                      AGED ABOUT 86 YEARS,
                      T S GARDEN, BEHIND SUPER BAZAR,
                      UDUPI 576 101.

                   3. MR. T S ZAFRULLA
Digitally signed      S/O MR T S ABDUL RAHIMAN,
by SHARADA            AGED ABOUT 55 YEARS,
VANI B
                      T S GARDEN, BEHIND SUPER BAZAR,
Location: HIGH        UDUPI 576 101.
COURT OF
KARNATAKA          NOTE: KAMARUNNISA EXPIRED ON 02-02-2019
                   HENCE SHE HAS NOT MADE PARTY IN THIS WP
                   PETITIONER NO.2 NOT CLAIM THE
                   BENEFIT OF SENIOR CITIZEN
                                                               ...PETITIONERS
                   (BY SRI. SHASHIKANTH PRASAD.,ADVOCATE)

                   AND:

                   THE AUTHORIZED OFFICER/ CHIEF MANAGER
                   CANARA BANK LTD.,
                   FOUNDERS BRANCH,
                            -2-
                                       NC: 2023:KHC:28615
                                    WP No. 15334 of 2023



MUKIND NIWAS, K M MARGA,
UDUPI 576 101.
                                           ...RESPONDENT
(BY SRI.C VINAY SWAMY., ADVOCATE FOR C/R
IN CP NO.9718/2023)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET
ASIDE THE ORDER DATED 19/10/2022 IN CRL MISC NO
167/2022 PASSED BY THE COURT OF THE PRINCIPAL SENIOR
CIVIL JUDGE AND CHIEF JUDICIAL MAGISTRATE, UDUPI
(ANNEXURE-C).

     THIS PETITION COMING ON FOR FURTHER HEARING
THIS DAY, THE COURT MADE THE FOLLOWING:

                        ORDER

The borrowers are before this court for laying a

challenge to the coercive loan recovery proceedings

instituted under the provisions of SARFAESI Act, 2002.

They were granted reprieve vide interim order dated

26.07.2023 which reads as under:

"Counsel for the petitioners submits that his clients would pay 50% of the amount outstanding namely Rs.64,00,000/- [i.e., Rs.32,00,000] within one week and on such payment being made, the possession of the property should be restored to his client. He also undertakes to come out with the plan of repayment of the remainder.

Call this matter on 4.8.2023 for further hearing. If payment is not made, Writ

NC: 2023:KHC:28615 WP No. 15334 of 2023

Petition would be dismissed on that ground itself".

2. Thereafter extension was granted vide order

dated 04.08.2023 which reads as under:

"This Court vide order dated 26.07.2023 has said as under:

"Counsel for the petitioners submits that his clients would pay 50% of the amount outstanding namely Rs.64,00,000/- [i.e., Rs.32,00,000] within one week and on such payment being made, the possession of the property should be restored to his client. He also undertakes to come out with the plan of repayment of the remainder.

Call this matter on 4.8.2023 for further hearing. If payment is not made, Writ Petition would be dismissed on that ground itself".

Counsel for the respondent-bank complains that the condition subject to which reprieve was granted has not been complied with by making payment of the stipulated amount and therefore writ petition be dismissed Consistently with a catena of decisions of Apex Court. He has also produced a copy of judgment dated 05.01.2023 passed by a Co-ordinate Bench of this Court in petitioner's W.P.No.15613/2022 in respect of very same loan. The Court has to have say of the counsel for the petitioner who is absent.

NC: 2023:KHC:28615 WP No. 15334 of 2023

Call this matter on 11.08.2023 to enable the counsel for petitioner to come and make submission. Interim order granted earlier is extended till next date of hearing".

3. Learned Panel Counsel appearing for the bank

submits that the petitioners were before this Court last

year in W.P.No.15631/2022 for a similar relief and a Co-

ordinate Bench of this Court vide judgment dated

05.01.2023 had granted a period of five months for

making payment of outstanding amount. Paragraph 9 of

the judgment reads as under:

"9. In the aforesaid facts and circumstances, I deem it appropriate to dispose the petition with a direction to the petitioners to deposit the entire amount as is offered by him, within five months from the date of receipt of copy of this order, failing which, it would be open to the respondent-Bank to initiate proceedings in accordance with law".

4. Learned Panel Counsel vehemently complains

that the petitioners have not paid any amount despite the

judgment of last year in the above writ petition and also in

spite of two interim orders passed in this petition and

NC: 2023:KHC:28615 WP No. 15334 of 2023

therefore, he contends that they do not deserve any

leniency at the hands of this court. At this stage, counsel

for the petitioners have moved a memo seeking leave to

withdraw the petition arguing that his clients have already

applied for OTS benefit. The memo reads as under:

"Now the Respondent Bank agreed for OTS proposal. Hence, the Petitioner withdraw this Writ Petition.

Therefore prays that the above writ petition may be disposed as not press."

6. Ordinarily, this court would not deny leave to

withdraw petitions of the kind since that right is essentially

of the dominant litis in the light of SHEELA BARSE vs.

UNION OF INDIA, (1988) 4 SCC 226. However that is not

the Thumb Rule. Where the conduct of the litigant is

culpable, leave to withdraw is not accorded. The above

narrative shows that petitioners' conduct is blameworthy

qua the Respondent-bank. Therefore this request for

withdrawal of the petition is rejected and petition being

thoroughly devoid of merits, is dismissed with a cost of

Rs.5,000/- (Rupees Five Thousand) only.

NC: 2023:KHC:28615 WP No. 15334 of 2023

The bank to take all coercive proceedings for the

recovery of subject loan amount on a war footing.

Sd/-

JUDGE

Snb/

 
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