HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.1430 of 2014 Dated : 23.01.2014 Between:
Gadiparthi Venkateswarlu s/o. Narayana, Occu:Agriculture, r/o. Adavarivulapadu village, Nandigama Mandal, Krishna district and others.
… Petitioners And The Indian Bank, Nandigama, Krishna District, rep.by Its Branch Manager and others.
… Respondents This Court made the following :
HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.1430 of 2014 ORDER :
Petitioners obtained loan from the 1st respondent-Bank by pledging red chillies produced by them and kept in the Cold Storages of respondents 2 to 4. As per the terms of the agreement, petitioners were supposed to clear of the loan amount by April, 2013. If the loan amount is not repaid, the Bank was at liberty to conduct auction to recover the loan amount. Earlier when the Bank intend to conduct auction to recover the loan amount, petitioners submitted representations requesting to grant some more time to clear of the loan amount. Considering the said request, the 1st respondent-Bank granted further time, which expired by 31.12.2013. Since the loan amount is not repaid as undertaken by them, Bank has now issued notice to conduct auctions of red chillies to recover the loan amount due and payable to the Bank. Auction is proposed to be conducted in three phases starting from 24.01.2014.
2. Leaned counsel for the petitioners submits that, at present the market value of the red chilli is less and, therefore, petitioners being small farmers, will be put to irreparable loss if red chilli is disposed of now. Learned counsel further submits that petitioners are willing to pay immediately 25% of the loan amount and also will undertake in the form of affidavits before the first respondent-Bank within next two days that balance amount will be paid on or before 31.05.2014. Petitioners undertake to pay 25% of the loan amount within one week from today.
3. In the similar circumstances, this Court having regarded the statement and affidavits filed by the petitioners therein to repay the loan amount within proposed period, this Court granted stay of auction to be conducted till the guarantee period of undertaking is expired.
4. Having regard to the submissions made by the counsel for the petitioners and counsel for respondent-Bank, the writ petition is disposed of directing the petitioners to submit their affidavits within next two days undertaking to clear the entire loan amount before 31.05.2014. However, petitioners shall pay 25% of the loan amount within one week from today.
Subject to fulfilment of the above conditions, the 1st respondent Bank is directed not to conduct auction to the seized stock till 31.05.2014. However, the seized stock, remain under the custody of the respondent-Bank till loans are cleared.
Miscellaneous petition, if any, pending in this writ petition, shall stand closed. No costs.
JUSTICE P.NAVEEN RAO Date: 23.01.2014 kkm HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.1430 of 2014 Dated : 23.01.2014 kkm