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2022 DIGILAW 28 (HP)

A2Z Departmental Store v. Canara Bank, Mohali

2022-01-07

JYOTSNA REWAL DUA, MOHAMMAD RAFIQ

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ORDER : 1. This writ petition has been filed by the petitioners i.e. M/s A2Z Departmental Store through its proprietor Rajender Kumar (borrower) and his wife Smt. Manju, who is guarantor, with the prayer that the respondent-Bank be directed not to take any coercive action against the petitioner, in view of order dated 24.12.2021, passed by this Court in CWP No. 8179 of 2021 and further to restrain the respondent-Bank from taking forcible physical possession of the mortgaged property, i.e. land and building comprised in Khewat No. 02, Khatauni No. 5 min, bearing Khasra No. 17 min, measuring 2B-12B min 24200/209664 share in Khewat No. 1, Khatauni No. 3 min, total area measuring 02B-13B min a share, i.e. total area from Khata 0 bigha, 06 biswa, situated in village Jehu, Pargana Lachhdag, Hadbast No. 745, Tehsil Kasauli, District Solan, H.P. 2. Petitioner No. 1 availed the total loan facility amounting to Rs. 1,05,00,000/- for the construction of commercial shop and to run departmental store. According to the petitioner, however, the total loan amount of Rs. 65,00,000/- was sanctioned as Fund Based Secured OD (Canara Trade Scheme), Rs. 20,00,000/- as term loan for construction of commercial shop from the respondent-Bank for business purpose in the month of April, 2019. Petitioner No. 2 stood guarantor for petitioner No. 1 and mortgaged his residential property in favour of the respondent-Bank. The respondent Bank declared the loan account of petitioner No. 1 as NPA on 19.05.2021. Thereafter, petitioner No. 1 received notice dated 18.09.2021, under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, issued by the respondent-Bank to repay the loan amount of Rs. 1,10,81,288.79 within sixty days from the receipt of notice. It is contended that petitioner No. 1 was regular in making payment of all due installments, but unfortunately due to onset of Covid-19 pandemic, his business suffered loss and the repayment of loan installments became very difficult for him. However, somehow, the petitioner managed to make re-payment of loan installments till August, 2021, but due to the killing effect of the pandemic on his business, it became very difficult for him to make regular payments to the respondent-Bank for some time. It is contended that petitioner No. 1 has made proposal dated 20.12.2021 (Annexure P-2) to the respondent-Bank with regard to settlement of his loan account. It is contended that petitioner No. 1 has made proposal dated 20.12.2021 (Annexure P-2) to the respondent-Bank with regard to settlement of his loan account. The respondent-Bank issued notice dated 20.12.2021 to the petitioners to hand over possession of the mortgaged property on or before 03.01.2022. The respondent-Bank did not consider the proposal of the petitioner for one time settlement. 3. It is contended that the petitioners had earlier approached this Court by way of filing CWP No. 8179/2021 in a situation when Debts Recovery Tribunal, Chandigarh, was not working because there was no Presiding Officer posted there. When the Court was informed that the Central Government vide Notification dated 13th December, 2021 has entrusted the additional charge of the post of Presiding Officer of DRT-1, Chandigarh to the Presiding Officer, DRT, Jaipur, the aforesaid writ petition was disposed of vide order dated 24.12.2021, with a liberty to the petitioners therein to move an application before Debts Recovery Tribunal, Jaipur for taking up the matter earliest, either physically or through Video Conferencing. This Court in the aforesaid order, directed the respondent-Bank not to take any coercive action against the petitioners for a period of ten days or till the matter is taken up for appropriate orders, whichever is earlier. 4. Learned Counsel for the petitioners submitted that the charge of Debts Recovery Tribunal, Chandigarh was given to the Presiding Officer, Debt Recovery Tribunal, Jaipur till 31.12.2021 and thereafter, the functioning of DRT-1, Chandigarh has come to stand still. The Supreme Court in Special Leave to Appeal (C ) No. 10911 of 2021, titled as State Bar Council of Madhya Pradesh versus Union of India, has held that in view of the present situation, High Courts may entertain such disputes directly, even if, the part of remedy may be availed before DRT. He further submitted that the petitioner is agreeable to settle the loan amount by depositing all the due installments, for which petitioner No. 1 is in default and requesting them for regularizing his loan account and rescheduling the payment. He further contended that the petitioner No. 1 has never defaulted in making payment of installments ever since the loan was advanced to him and was always regular in making repayment of the loan amount. 5. He further contended that the petitioner No. 1 has never defaulted in making payment of installments ever since the loan was advanced to him and was always regular in making repayment of the loan amount. 5. Having regard to the submissions made and without expressing any opinion on the merits of the case, we dispose of this writ petition reserving liberty to the petitioner to approach the respondent-Bank, by means of a comprehensive representation after depositing all the due installments, directing the respondent-Bank to consider the representation of the petitioner, taking into consideration the situation arising out of Covid-19 pandemic and financial crises faced by the petitioner, regularizing the loan account of the petitioner, or otherwise rescheduling his repayment schedule in their discretion. Such decision on the representation of the petitioner be taken within a period of one month. Till the decision of the representation, no coercive action shall be taken by the respondent-Bank against the petitioners. 6. Pending applications, if any, also stands disposed of.