Jitendra Singh and Another vs Managing Director and Another

Mohammad Rafiq, J.—This writ petition has been filed by Petitioners with prayer that they are willing to pay due amount of loan to Respondent Bank and for this purpose they may be granted some more time. It is submitted that Respondent Bank in meantime may be required not to proceed against Petitioners u/s 13(2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Under orders of this Court dated 10.01.2011 and 28.01.2011, Petitioners deposited a total sum of Rs. 9,50,000/-. Petitioners are ready and willing to deposit remaining amount, which according to learned Counsel for Respondent Bank is Rs. 5,40,000/- and odd. Learned Counsel for Petitioners submits that in this an amount of Rs. 1,38,907/-, which is late payment penalty, is highly unreasonable. There was delay in payment of 18 installments for which Respondent Bank should charge simple interest.

In the facts of present case, Petitioners are required to deposit remaining amount within a period of two weeks, excluding the amount of late payment penalty and for which purpose Respondent Bank shall forward Petitioner''s case for waiver amount of late payment penalty to the Head Office, which the Respondent Bank may consider sympathetically in view of conduct of Petitioners reflected from their conduct before this Court for depositing all the aforesaid due amount. Decision on such proposal may be taken by Respondent Bank within a period of one month. The Respondent Bank on such settlement of the account, shall return all titled documents to Petitioners. Till the account of Petitioner is finally settled, no coercive action shall be taken against the Petitioner subject to his depositing the amount referred to in beginning of this para.

Writ petition accordingly stands disposed of.