High Court of Gujarat
M/S HARESH COTTONversusSTATE OF GUJARAT THROUGH DEPUTY SECRETARY (APPEALS)
- Decided
- Disposal
- 27-WITHDRAWN @ ADM.STAGE
- Bench
- NIRZAR S DESAI
Holding
The petition is disposed of as withdrawn.
Summary
The petition was filed by M/s Haresh Cotton & Ors. seeking a reduction of the interest rate on a bank loan from 16% to 10% and a waiver of legal fees, after the death of the firm's proprietors. The guarantor of the firm, Mr. Parimal Vrajlal Bagadia, appeared and agreed to assume liability and to settle the dues by 31‑January‑2027. The bank’s counsel concurred with the proposed reduction and waiver. On the basis of this settlement, the petitioner’s counsel sought permission to withdraw the petition. The court granted the request, disposing the petition as withdrawn without any order as to costs.
Issues considered
- Whether a civil petition seeking modification of loan terms may be withdrawn after the parties reach a settlement.
Subjects
- guarantor
- loan interest reduction
- legal fee waiver
- withdrawal of petition
- civil procedure
Judgment
C/SCA/1355/2024 ORDER DATED: 04/08/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO.1355 of 2024
=========================================
M/S HARESH COTTON & ORS.
Versus
STATE OF GUJARAT THROUGH DEPUTY SECRETARY (APPEALS) & ORS.
=========================================
Appearance :
MR HARSHIL C DATTANI for the Petitioner Nos.1.1 to 1.3.
MR ANGESH A. PANCHAL, AGP for the Respondent No.1.
MR DIPAN DESAI for the Respondent Nos.2 & 3.
=========================================
CORAM:HONOURABLE MR. JUSTICE NIRZAR S. DESAI
Date : 04/08/2026
ORDER
Today, one Mr. Parimal Vrajlal Bagadia, Proprietor of
M/s. Ramniklal Vrajlal and Company is present in the Court and he
is identi:ed by learned advocate Mr. Harshil C. Dattani. Learned
advocate Mr. Harshil Dattani, upon instructions received from Mr.
Parimal Vrajlal Bagadia states that Shri Sureshbhai Vrajlal
Bagadiya, Proprietor of the petitioner :rm i.e. M/s. Haresh Cotton
as well as his wife Manjulaben Sureshbhai Bagadia have passed
away and Mr. Parimal Vrajlal Bagadia, being the guarantor of the
petitioner Firm as far as the loan advanced to the Firm is
concerned has taken over the responsibility to pay the dues. He
states that the rate of interest that is required to be payable by the
petitioner to the Bank may be reduced from 16% to 10% and the
respondent No.2 Bank may be directed to waive the legal fees
which has been charged upon them.
2. Learned advocate Mr. Dipan Desai appearing with Ms.
Jeni Thakore for the respondent No.2 Bank, under instructions,
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C/SCA/1355/2024 ORDER DATED: 04/08/2026
states that the simple interest rate payable by the petitioner would
be reduced from 16% to 10% and legal expenses would not be
charged by the Bank from the present petitioner.
3. In view of the above statement, the Guarantor as well
as brother of the Proprietor of the petitioner Firm who is present in
the Court undertakes and makes a statement before this Court that
pursuant to the demand notice issued by the respondent No.2
Bank, the petitioner shall clear the outstanding dues latest by
31.1.2027.
4. In view of the above, upon instructions received from
the Guarantor of the :rm, learned advocate Mr. Harshil Dattani
seeks permission to withdraw this petition in view of the above
statement made by learned advocate Mr. Dipan Desai. Permission
as prayed for is granted. The petition stands disposed of as
withdrawn. Notice is discharged. No order as to costs.
(NIRZAR S. DESAI,J)
SAVARIYA
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: RAJNISH NARENDRA SAVARIYA(HC00179), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 04/08/2026 17:45:01
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