Kailash Joshi And Another vs State Bank Of India

Manoj Kumar Tiwari, J

Petitioners took a loan from State Bank of India, Branch Khatima, District Udham Singh Nagar. Since they defaulted in repayment of loan, therefore, respondent-Bank has proceeded to recover the outstanding amount from the petitioners by invoking provisions of SARFAESI Act, 2002. Thus, feeling aggrieved, petitioners have approached this Court challenging the notice issued under Section 13 (2) of the said Act.

Learned counsel for the petitioners submits that due to COVID-19 and consequent lockdown, their business came to a grinding halt, therefore, there was a default on the part of petitioners in repaying the loan. He further submits that petitioners' are ready and willing to repay the entire loan but all they need is some reasonable time for repayment of the loan.

Learned counsel for the respondent-Bank submits that if petitioners deposit some amount with the Bank to show their bona-fide, then the Competent Authority in the Bank will consider their request for grant of reasonable time for repayment of the loan.

Having regard to the willingness shown by petitioners to repay the loan and also the concession given by counsel appearing for respondent-Bank, the writ petition is disposed of with liberty to the petitioners to make a representation to the Competent Authority in the Bank within three weeks from today. Alongwith their representation, petitioners shall also deposit a sum of Rs. 7,50,000/- to show their bona-fide. If petitioners make such representation and also deposit the stipulated amount within three weeks, then the Competent Authority shall consider petitioners' request and take appropriate decision, in accordance with law, as early as possible preferably within four weeks from the date of receipt of the representation alongwith certified copy of this order.