IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.800 of 2009 M/s Asha Electronics, D.N. Singh Road, Bhagalpur, through its Proprietor Sri Arun Kumar Singhania, son of Late Badri Prasad Singhania, Resident of D.N. Singh Road, P.S.- Kotwali, District- Bhagalpur. ……. Petitioner. VERSUS 1. The Canara Bank through its Chairman-cum-Managing Director, Banglore. 2. The Senior Manager, Canara Bank, Bhagalpur Branch, M.G. Road, Bhagalpur. …… Respondents. -------------------- Counsel for the Petitioner : Mr. Gautam Kejriwal. Counsel for the Bank : Mrs. Nilu Agarwal. ------------------- 05 17.03.2009 Mr. Arun Kumar Singhania carries on his business in the firm name and style as M/s Asha Electronics at Bhagalpur, the petitioner. He had taken certain financial accommodation from the Canara Bank, Bhagalpur Branch but defaulted in meeting his liabilities. The bank was, as such, forced to initiate proceedings in terms of Section 13 (2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “SARFAESI Act”). Notice in terms of Section 13 (2) of SARFAESI Act being served, petitioner made an application for compromise which was allegedly not responded. Bank then sought to initiate proceedings in terms of Section 13 (4) of the Act without passing any order in terms of Section 13 (3) A of the Act. This brought the petitioner to this Court. Willingness to compromise and pay off debt have been expressed in positive terms and bank has expressed the response that the outstanding due after accounting for all payments up to date as on 01.12.2008 was 2 worked out at Rs. 4,92,382/-, which included simple interest from the time the account became NPA. This is the compromise amount. Pursuant to this Court’s order dated 11.02.2009, petitioner deposited Rs. 50,000/-. Bank now wanted the petitioner to pay the balance amount so left in two instalments, 50% of the balance by 28th February, 2009 and balance by 31st May, 2009, meaning thereby, petitioner was required to pay Rs. 2,21,196/- by 28th February, 2009 and Rs. 2,21,196/- by 31st May, 2009. Thus, taking into account Rs. 50,000/- paid under order’s of this Court and these two instalments, the entire Rs. 4,92,382/- would be recovered and bank would not charge any interest any further. Sri Gautam Kejriwal, learned counsel for the petitioner submits that on 18th February, 2009 after depositing Rs. 50,000/- as aforesaid, the petitioner suffered massive cardiac arrest and has been under intensive care at Kolkata. His sons, who are in service, are some how managing him and have agreed to liquidate the dues, as proposed, with accommodation of time. In view of this unforeseen circumstance, the matter was adjourned and now it is submitted that the dates may be shifted. Having heard learned counsel for the parties and with their consent the writ petition is being disposed of at this stage itself. In view of the facts noted above and the eagerness of the petitioner to liquidate the dues, considering the equities amongst parties, this Court directs that the petitioner having already deposited Rs. 50,000/- under orders of this Court and petitioner depositing a sum of Rs. 2,21,196/- by 31st May, 2009 and the balance of Rs. 2,21,196 by 3 31st July, 2009, the entire liability towards the bank would be discharged by compromise. In case, the petitioner is unable to make the deposits, as aforesaid and within the time aforesaid, bank would be free to proceed in the matter in accordance with law, as if this Court had not passed any order. The writ petition is accordingly disposed of. Trivedi/ (Navaniti Prasad Singh, J.)