Dated : 09.10.2014 Between:
Krishna Nori Sarma, S/o.N. Sarma, A/a.Major, Occu : Business, R/o.Plot No.61, Road No.5, Jubilee Hills, Hyderabad, Telangana .. Petitioner And Karur Vysya Bank, Rep., by its Manager, Karur Vysya Bank, Jubilee Hills Branch, Hyderabad & another .. Respondents This Court made the following :
ORDER :
The petitioner by mortgaging the gold articles obtained gold loans in the year 2012. The loan amounts were not repaid. In the meantime, the amount was accumulated including the interest and the value of the ornaments pledged for obtaining loan has also come down. As the loan was outstanding and the value of the ornaments pledged with the bank has come down and the borrower was not clearing the loan or renewing the loan accounts, the bank took steps to conduct auction to recover the amount of loan due and payable to the bank. At that stage petitioner requested for grant of some time for payment of margin amount and for settlement of the account. Having considered the request, the Bank granted time till 30.09.2014 to enable the petitioner to pay the amount. However, the amount was not paid, but on the last date, he sought certain clarification. This writ petition is instituted alleging that the bank is going ahead to conduct fresh auction and if the gold ornaments are auctioned great prejudice would be caused.
2. Learned Standing Counsel for the 1st respondent-Bank submits that in spite of giving sufficient time, the petitioner is not coming forward with clear commitment to renew the loan account and therefore, the Bank was compelled to go for auction. He further states that even now, the Bank is ready to accommodate the petitioner subject to petitioner showing his bonafides by depositing some amount today and considerable amount within next two weeks.
3. Having regard to the submissions made, the writ petition is disposed of as under subject to petitioner depositing Rs.1 lakh today, a further sum of Rs.2 lakhs within one week from today and Rs.2 lakhs within three weeks from today and also to renew the loan accounts within three weeks from today, the bank shall not conduct auction to sell the gold ornaments pledged by petitioner. If the petitioner fails to pay the amounts as per above schedule, the Bank is at liberty to proceed to conduct auction and to recover the amounts payable to the Bank. The bank is also entitled to recover the costs. There shall be no order as to costs.
Miscellaneous petitions, if any, pending in this writ petition, shall stand closed.
P.NAVEEN RAO,J 09th October, 2014 Note : Issue C.C. today B/o Rds THE HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.30154 of 2014 Dated : 09.10.2014