TaxTMI 
TaxTMI 
2019 (10) TMI 220
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....rit petition. 2. It is stated that the petitioner-M/s. Sri. Basaveshwara Rice Industries had availed financial assistance from the respondent-Bank for setting up and functioning of the rice mill. Since, the petitioner failed to repay the loan amount, the respondent-Bank initiated recovery proceedings under the SARFAESI Act. The petitioner made a proposal to settle the loan amount under one time settlement. The respondent-Bank by communication dated 28.09.2018 accepted the petitioner's proposal and offered OTS to close the dues by remitting Rs. 3,89,15,393/-. The petitioner agreed to pay the balance amount within six months, that is from 28.09.2018. The petitioner failed to adhere to terms of one time settlement. Hence, the respondent-Bank ....
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....rnate remedy available under the Statue, it may not be appropriate for this Court to entertain the writ petition. But, it is not total bar to entertain the writ petition, when the petitioner makes out extraordinary ground. In the case on hand, no extraordinary ground is made out to entertain the writ petition except saying that if petitioner is granted some time he would make payment. The petitioner has not complied with the terms of one time settlement. 7. The Hon'ble Supreme Court in a case reported AIR 2018 SC 676 (Authorized Officer, State Bank of Travancore and another V. Mathew K.C.) has held at paras 9 and 16, which read as follows: "9. The statement of objects and reasons of the SARFAESI Act states that the banking and financial ....
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....or reasons discussed, of the case falling under a defined exception, duly discussed after noticing the relevant law. In financial matters grant of ex-parte interim orders can have a deleterious effect and it is not sufficient to 14 say that the aggrieved has the remedy to move for vacating the interim order. Loans by financial institutions are granted from public money generated at the tax payers expense. Such loan does not become the property of the person taking the loan, but retains its character of public money given in a fiduciary capacity as entrustment by the public. Timely repayment also ensures liquidity to facilitate loan to another in need, by circulation of the money and cannot be permitted to be blocked by frivolous litigation ....