Father repays deceased son’s loans

NT Correspondent

Bengaluru: The High Court of Karnataka disposed of an appeal after an 85-year-old person promised to pay off the debt of his deceased son.

B Somashekar Gowda, representing Ms Embee Agro Food Industries had filed a petition seeking a direction to Canara Bank not to take coercive action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act as he was willing to pay the pending dues.

The bank had secured the house property of Gowda’s son who had since deceased.

Gowda’s son was the managing director of the company and after his unfortunate death his father took over the responsibility of repayment of the loan amount.

The single judge bench of Justice Krishna S Dixit said, “In the event, the petitioner would deposit Rs.1.8 crores, the bank shall consider release of the property from the ambit of the proceedings under the SARFAESI Act.”

The bank has however approached the division bench against the interim order of the single judge bench.

The division bench of Chief Justice Prasanna B Varale and Justice Krishna S Dixit noted that Gowda has repaid the entire onetime settlement amount of Rs.19,76,32,000 albeit with some delay.

The interest for the amount was calculated at Rs.98,46,492. The counsel for Gowda handed over to the bank’s counsel two banker’s cheques for Rs.40 lakh and Rs.58,46,492 respectively.

The HC directed the bank to accept it and said it was being done due to the unusual circumstances. “The appellant –bank is directed to accept the instruments.

"We make it clear that this arrangement is made due to peculiar circumstances of the case referred to above and the same shall not be treated as a precedent, since no law is intended to be laid down,” the HC said.

The bank sought another Rs.5 lakh towards miscellaneous expenses which Gowda agreed to pay “so as to put an end to the litigation once for all.” The HC gave time till December 31, 2023 to pay the Rs.5 lakh and disposed the appeal. (WA 620/2023)