Nazma Begam vs District Magistrate, Udham Singh Nagar & Others

Manoj Kumar Tiwari, J

Petitioner took a housing loan from Canara Bank, Branch Kichha, District Udham Singh Nagar. Since petitioner defaulted in repayment of loan, therefore, respondent bank has initiated coercive action by invoking provision of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short “SARFAESI Act”). Thus, feeling aggrieved, petitioner has approached this Court.

By means of this writ petition, petitioner has sought following relief:-

i. Issue a writ order or direction in the nature of certiorari to quash the impugned order dated 17.06.2021 (Annexure -1), passed by respondent no. 1, further to quash the impugned E-auction notice dated 27.12.2021 (Annexure-3) issued by respondent no. 2.

ii. Issue a writ order or direction in the nature of mandamus to direct the respondent to accept the remaining loan amount from the petitioner in easy & equal installments.

iii. Issue a writ order or direction in the nature of mandamus to direct the respondent to not to proceed the recovery proceedings further till the disposal of writ petition.

Mr. P.C. Pethshali, learned counsel appearing for the petitioner submits that petitioner is ready and willing to repay the entire outstanding loan provided some reasonable time be given to her. He further submits that due to non availability of Presiding Officer, Debt Recovery Tribunal, Dehradun is not functioning these days.

Mr. Sobhit Joshi, learned counsel appearing for the respondent Bank fairly submits that if petitioner deposits 40% of the outstanding loan amount within three weeks from today, some reasonable time may be given to petitioner to pay the remaining amount in installments.

Having regard to the willingness shown by the petitioner, the writ petition is disposed of with the following directions:

(i) Petitioner shall deposit 40% of the outstanding amount with the respondent bank within three weeks from today.

(ii) The remaining amount shall be deposited by the petitioner in three equal installments spread over a period of six months, the amount whereof shall be fixed by the bank.

(iii) The last instalment shall also carry interest & other charges, if any.

(iv) In case of any default by the petitioner, she shall not be entitled to protection of this order and respondent/Bank will be free to proceed against her, in accordance with law.