THE HON'BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.29185 OF 2014 DATE: 25-09-2014 Between:
Somepalli Srinivasa Rao S/o.Late Sambaiah, Tatapudi Village, Chilakaluripet Mandal, Guntur District, Andhra Pradesh &17 others AND State Bank of India, Edlapadu Branch, Edlapadu Village & Mandal, Guntur District, rep., by its Branch Manager.
…Petitioners --RESPONDENT The Court made the following:
THE HON'BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No. 29185 OF 2014 ORDER:
The petitioners are the farmers and they have produced red chilly by cultivating their lands. The petitioners obtained loans from the respondent bank on the stocks of chilly produced by them by keeping the produce in the cold storage. As the loans are not repaid within the specified time inspite of the notices issued to the petitioners, on 20-09- 2014 auction notice was published in newspapers proposing to conduct auction on their stock on 29.09.2014. Aggrieved thereby, this writ petition is instituted.
Learned counsel for the petitioners submits that as on 20.08.2014 these (18) petitioners put together owe an amount approximately Rs.81,63,297/- to the respondent-bank, and as against this outstanding amount, the petitioners have paid Rs.11,97,000/- on 20.09.2014 and 22.09.2014 and Rs.2,34,000/- was paid on 23.09.2014.
Learned counsel further submits that due to bad monsoon and various other factors leading to bifurcation of the State and lesser market value for the red chilly than what was expected by the petitioners, stocks were not disposed of immediately to repay the loan. The petitioners expect that during festival season, they would get better price for their product. The petitioners are willing to clear the outstanding amounts but as they have no other means to pay the loans they only request for some more time for clearance of their dues on loans obtained from the respondent bank.
Learned Standing Counsel for the respondent-bank opposed the said plea and submits that inspite of affording sufficient time, the petitioners have not chosen to clear the loan amount and huge amount of loan was outstanding and the respondent-bank had no option but to take steps to conduct auction to recover the money payable by the petitioners.
Having regard to the fact that the petitioners are farmers and they are bonafidely seeking to repay the entire loan amount but only seek for some more time, in the facts of this case, subject to the petitioners paying Rs.33,00,000/- (Rupees Thirty three Lakhs only) within four weeks from today, the respondent-bank is directed not to proceed to conduct auction as proposed on 29.09.2014. The balance amount shall be paid in two installments thereafter i.e. 50% amount within four (04) weeks from the date of payment of Rupees Thirty three lakhs as directed above and the remaining outstanding amount within further four weeks from the date of payment of first instalment. If the petitioners fail to pay the amount as per the above schedule, the respondent-bank is entitled to proceed to conduct auction. The respondent-bank is entitled to demand additional amount that is due by way of interest in the mean time and also to recoup costs incurred by the respondent- bank for proceeding to conduct auction, and the same shall be paid along with final installment.
Pending W.P.M.Ps in this writ petition shall stand closed in the light of this final order. No order as to costs.
P.NAVEEN RAO,J Date: 25-09-2014 Rds THE HON'BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION Nos.29185 OF 2014 DATE: 25-09-2014 Rds