Neerudu Venkanna vs. The Branch Manager And 2 Others
Facts
The petitioner, Neerudu Venkanna, participated in an e-auction conducted by Vijaya Bank (now Bank of Baroda) and was declared the successful bidder after paying an Earnest Money Deposit (EMD) of Rs. 37,62,500. The terms stipulated that failure to pay the balance 75% within 15 days would result in the forfeiture of 25% of the EMD. The petitioner requested a refund of the EMD, which the bank refused, citing the forfeiture clause. The petitioner made a further request on November 21, 2019, and the bank reiterated its refusal in a letter dated November 22, 2019. Challenging this refusal, the petitioner filed a writ petition before the High Court.
Held
The Court noted that the petitioner, having realized that they ought to avail the remedy provided under Section 17 of the SARFAESI Act, 2002, sought leave to withdraw the writ petition. The petitioner also requested that the period of pendency of the writ petition be excluded for the purpose of calculating the limitation period for filing their case before the Debt Recovery Tribunal, as they had not filed within the initial 45-day period. The Court, while granting the liberty sought by the petitioner to withdraw the writ petition and pursue the remedy under the SARFAESI Act, explicitly stated that it was not expressing any opinion on the plea of limitation. The Court held that it would be open for the petitioner to raise all available grounds, including the plea on limitation, before the Debt Recovery Tribunal. Consequently, the writ petition was dismissed as withdrawn.
Key Issues
1. Whether the petitioner is entitled to a refund of the EMD amount of Rs. 37,62,500, along with bank interest, from Vijaya Bank (now Bank of Baroda)? Petitioner's Contention: The petitioner argued that they should be allowed to avail the remedy provided under Section 17 of the SARFAESI Act, 2002. They further contended that the period of pendency of the writ petition before the High Court should be excluded for calculating the limitation period for filing the application before the Debt Recovery Tribunal (DRT), as they had not availed the remedy within the stipulated 45 days from the issuance of the impugned letter. Revenue/State's Contention: The judgment does not record any specific contentions from the revenue or state respondents regarding the refund of the EMD or the limitation period. The primary engagement appears to be with the petitioner's request to withdraw the writ petition and pursue the statutory remedy.
Sections Cited
Section 17
AI-generated summary — verify with the full judgment below
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) MONDAY,THE EIGHTEENTH DAY OF JULY TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE SRI JUSTICE P. NAVEEN RAO AND THE HON'BLE Dr. JUSTTCE G.RADHA RAN| WRIT PETITION NO: 43 OF 2021 Between: Neerudu Venkanna, S/o late Chandraiah Aged about 43 years, Occ. proprietor M/s. Acouafeena inrrstries,"dm."it Ft;i N;. ionlilivi. itr, GSt Housino eo..b,_eandtidJ;-'N;;'"f":"i"yderabad, Fl/o Ftat wo. eOs, H. No. 1 -e{e5 & 7oo,'EA; E;;t,; d;ffi;. i, : A; I l;;l,n;;;, rfi ;;X;: AND ...PET|IONER 'l ' The Branch Manaoer, Vijqya Bank (now Bank of Baroda) west Manedpaly Branch, Secunderibad fSbo 016.'
The Zonal Manaoer Vijaya Bant inow Bank of Baroda), Zonal Office, Basheerbash, Hideiao'jd _ 500 od-i-" 3' The Regionar Minager, Vijaya Bank (now Bank of Baroda), Regionar office, Himayatnagar, Hyddrabad-'SOO 0rg' - ' -- " 4' Union of rndia. rebresented by its secretary Ministry of Finance,Jeevan Deep Building parliment Street Nevi Oelniir-oooi '""" Re-sp.ondent No 4 is impreaded as per court order da ted o6t07t2022 in WP No. 43 2021 ...RESPONOENTS Petition under Articre 226 of the constitution of rndia praying that in the
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