HONOURABLE SRI JUSTICE P. NAVEEN RAO WRIT PETITION No. 18776 of 2014 Date :6.12.2014 Between :
Balagala Subrahmanyam S/o late Subbaiah R/o D No. 2-63, T Kammapalli village, Pullampet mandal, Kadapa district and others … Petitioner and The IDBI Bank Rep by its Branch Manager, Tenali branch Guntur district … Respondents The Court made the following:
HONOURABLE SRI JUSTICE P. NAVEEN RAO WRIT PETITION No. 18776 of 2014 ORDER:
Petitioners claim to be turmeric growers having taken on lease agricultural land and they have stored the stock of turmeric crop in Central Warehousing godown at Duggirala, Guntur district. Since price in the market was not viable, they intended to keep the stock stored for some time till they get good price and accordingly having stored the stock of turmeric, they have applied to the respondent bank to sanction loan against the turmeric stock kept in the warehousing godown. Accordingly, petitioners were sanctioned loan in August, 2012. The loan was for a short period and petitioners were required to pay the loan within one year. Even after lapse of period granted to them, as loan was not paid and even after several reminders farmers were not coming forward to clear the loans, bank has taken the extreme step of conducting auction of the turmeric stock to recoup the amounts due to the bank. At that stage, petitioners instituted this writ petition. On 22.7.2013 this Court ordered stay of auction subject to condition of petitioners paying 25 % of the loan amount quantified against each of them within a period of three weeks from the date of order.
2. Counter affidavit filed praying to vacate the interim suspension order. Learned counsel for respondent bank contends that huge amount is due from the petitioners and on account of non payment of loan amount bank is put to losses. The turmeric stock cannot lost long and unless it is disposed of immediately the produce would not fetch good price.
3. Learned counsel for petitioners submits that on 17.10.2014 Central Warehousing Corporation issued individual notices to the petitioners informing them that goods can be stored for a further period of three months only, petitioners are now willing to repay the entire outstanding loan amount within a period of three weeks and therefore there is no cause for the respondent bank to have a grievance.
4. Having regard to the submission made by the learned counsel for petitioners that petitioners are willing to pay the entire loan amount payable by the petitioners to the respondent bank within a period of five (5) weeks, without expressing any opinion on the merits of the matter, the writ petition is disposed of permitting the petitioners to repay the entire outstanding amount payable to the respondent bank including interest within a period of three weeks from today. In case the petitioners clear the loan amounts due to the bank within three weeks from today, petitioners are entitled to deal with the turmeric stock belonging to them. In default, it is open to the respondent bank to proceed further against petitioners in accordance with law. No costs. Having regard to disposal of writ petition, all old miscellaneous petitions are closed.
P NAVEEN RAO,J DATE: 6.12.2014 TVK HONOURABLE SRI JUSTICE P. NAVEEN RAO WRIT PETITION No. 18776 of 2014 Date :6.12.2014