Ram Babu Singh vs State Of Uttarakhand & Others

Manoj K. Tiwari, J

Petitioner took a Cash Credit Limit from Uttarakhand Gramin Bank, Branch Haldwani, District Nainital. Since petitioner defaulted in repayment of loan, therefore, respondent Bank has adopted coercive measures for recovery of the outstanding amount against the petitioner.

Mr. M.S. Rawat, learned counsel appearing for the Bank submits that the outstanding in the loan account of the petitioner was Rs. 30,96,324/- as on 04.06.2021.

Mr. M.S. Pal, learned Senior Counsel appearing for the petitioner submits that petitioner is ready and willing to repay the outstanding loan amount as early as possible, for which petitioner needs some time for arranging necessary funds. Learned Senior Counsel further submits that petitioner is an old person, who is suffering from various ailments and whatever default was committed in repayment of the loan was due to lockdown imposed in view of COVID-19

Mr. M.S. Rawat, learned counsel for the Bank submits that if petitioner submits a proposal to the Competent Authority in the Bank, for rescheduling the loan, then the Competent Authority shall consider petitioner's proposal and take appropriate decision, in accordance with law.

Accordingly, the writ petition is disposed of with liberty to the petitioner to make representation to the Competent Authority in the Bank on or before 08.12.2021. Along with his representation, petitioner shall deposit a sum of Rs. 1.00 lakh. If petitioner makes representation along with deposit of Rs. 1.00 lakh within stipulated time, the Competent Authority in the Bank shall look petitioner's proposal/representation and take appropriate decision, in accordance with law, within two weeks thereafter.

For a period of three weeks or till decision on petitioner's representation, whichever is earlier, status quo qua secured asset of the petitioner shall be maintained.