Abhijeet Roy and Another v. State of U.P. and 2 Others

Court No. - 3 Case :- WRIT - C No. - 42827 of 2023 Petitioner :- Abhijeet Roy And Another Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Akshay Kumar Shukla Counsel for Respondent :- CSC,Krishna Kant Tiwari Hon'ble Siddhartha Varma,J. Hon'ble Shekhar B. Saraf,J.

¶1Heard learned counsel for the petitioner, learned Standing Counsel for the State and learned counsel appearing for the Bank.

¶2By means of the present writ petition, the petitioner has prayed for quashing the impugned order dated 30.09.2023 passed by Additional District Magistrate (F & R), Varanasi under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act).

¶3Learned counsel for the petitioner submits that a housing loan was taken by the petitioner. The petitioner had been continuously paying the loan amount. However, on account of Covid-19 Pandemic, when certain payments of the loan installments were not made, the creditor Bank initiated proceedings of recovery under the SARFAESI Act. Learned counsel for the petitioner states that no notice was served upon the petitioner before declaring the account of the petitioner as Non Performing Assets and the Bank would be strongly taking further steps to recover the dues by auctioning the mortgaged property.

¶4At the very outset learned counsel for the petitioner has proposed to deposit 25% of the outstanding amount within a period of one month from today, with an undertaking that the remaining amount shall be paid in next three equal monthly installments.

¶5Learned counsel for the Bank states that pursuant to the recovery proceedings no auction proceedings have been fixed. He, however, states that the Bank has no objection if the borrower is willing to clear the debt by paying 25% of the outstanding amount within a period of one month from today and remaining amount in next three equal monthly installments.

¶6In view of the above stand of the learned counsel for the parties, at this stage, without looking into the merits of the case, we deem it appropriate to afford an opportunity to the borrower to clear the debt by paying 25% of the outstanding amount within a period of one month from today, and the remaining amount in next three equal monthly installments. The outstanding debt be directed to be paid with up-to-date interest.

¶7Needless to say that when the last installment is paid by the petitioner, the bank shall inform the petitioner the interest amount which would have accrued by the last date of payment and it shall be paid along with the last installment.

¶8We clarify that, if, the amount as has been promised by the petitioner is not deposited as per the undertaking then the Bank shall be free to recover the debt pursuant to the impugned notice.

¶9With these observations the writ petition is disposed of. Order Date :- 12.12.2023 Kuldeep (Shekhar B. Saraf,J.) (Siddhartha Varma, J.) High Court of Judicature at Allahabad