Nazimudeen A vs HDFC Bank Limited

C.S Dias, J

The writ petition is filed to direct the respondents to permit the petitioners to clear off the entire arrears of the loan availed by them by granting two months time.

The petitioners' case is that, they had availed an agricultural loan from the 1st respondent bank by creating an equitable mortgage. Due to the Covid-19 pandemic, they could not pay off the installments in time. The Bank has now issued Ext.P1 demand notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short 'Act') and is proceeding against the secured asset. The Bank has also filed a complaint before the jurisdictional Magistrate alleging that the petitioners have committed offences under Section 138 of the Negotiable Instruments Act. The petitioners are prepared to pay the entire outstanding amount in installments. Hence, the writ petition.

When the writ petition came up for consideration on 25.04.2023, this Court passed an interim order directing the petitioners to remit an amount of Rs.25,00,000/- within four weeks from the date of order.

Heard; Sri.Surin George Ipe, the learned Counsel appearing for the petitioners and Sri.John Prakash, the learned Counsel appearing for the respondents.

Sri.John Prakash, on instructions, submitted that the petitioners have not complied with the interim order dated 25.04.2023.

The Hon’ble Supreme Court in South Indian Bank Ltd vs. Naveen Mathew Philip (2023 LiveLaw (SC) 320), after adverting to a myriad of earlier judicial pronouncements rendered under the Act, has categorically declared that High Courts shall not, unless in extra ordinary circumstances, interfere with proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, in writ proceedings under Article 226 of the Constitution of India.

Having considered the pleadings and materials on record and taking note of the fact that the petitioners have not complied with the interim order dated 25.04.2023, I am not inclined to entertain the writ petition by exercising the discretionary powers of this Court under Article 226 of the Constitution of India. Nonetheless, it is upto the petitioners to work out their statutory remedies in accordance with law.

Resultantly, the writ petition is dismissed without prejudice to the right of the petitioners to work out their remedies in accordance with law.