Rnt Enterprise And 2 Ors vs Allahabad Bank And Anr

A.S. Bopanna, CJ

Heard Ms. D. Borgohain and Ms. P. Gohain, learned counsel for the petitioners. Also heard Mr. S. Chanda, learned counsel for the respondents.

The petitioners are before this Court seeking that the Respondent No.2 be directed to finalize the amount due from the petitioners by waiving the interest from the date of issue of notice under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short hereinafter referred to as 'SARFAESI Act') and grant concession on the interest chargeable. The petitioners are also seeking that the time be extended by four months to repay the outstanding amount. In that light, the petitioners seek that pending consideration of those aspects, the respondents be directed not to resort to the measures as provided in Section 13(4) of the SARFAESI Act.

The fact that the petitioners are borrowers from the Respondent Bank and the account has been treated as NPA is the undisputed position. Further, the details of the facts relating to the total outstanding from the petitioners to the Respondent Bank and the manner of payment is not adverted to in details inasmuch as the petitioners were before this Court in W.P.(C) No.4439 of 2018. In the said process, in a circumstance where the petitioners were seeking concession relating to payment of interest after initiation of the proceedings under the SARFAESI Act, the learned Single Judge before whom W.P.(C) No.4439 of 2018 had been listed, has taken into consideration the offer made on behalf of the petitioners. In that view, the balance repayable has been directed to be made in one go and, in that circumstance, the Respondent Bank has been directed to consider waiver of the interest. It is noticed that the learned counsel for the respondents has only indicated that a consideration to that effect would be made by the Bank if such a request is made by the petitioner. In that light, the matter is required to be examined limited to that aspect alone.

Presently, the petitioners contend that pursuant to the order passed by the learned Single Judge in the said writ petition, a communication dated 6.10.2018 was addressed to the Respondent Bank offering to pay the balance amount and seeking waiver of interest in terms of the observation as contained in the order passed by the learned Single Judge. The grievance is that no consideration to that effect has been made by the Respondent Bank, despite which there is likelihood of the Respondent Bank precipitating the matter by taking recourse to the provision of Section 13(4) of the SARFAESI Act. At the time of consideration of this petition, apart from taking note of the communication dated 6.10.2018 addressed by the petitioners herein, copies of the subsequent communications addressed on 9.1.2019 and 2.2.2019 is also noticed. In that view, at this juncture, in any event, this Court cannot come to a conclusion to determine as to whether the petitioners are entitled to the waiver of the interest. This is for the reason that the waiver of the interest would have to be considered by the respondents keeping in view the One-Time-Settlement Scheme if any available to that effect as circulated by the Reserve Bank of India. Though the learned counsel for the petitioners seek to contend that by the circular, the interest application has been indicated and it is provided that the interest would not be chargeable from the point the account has been treated as NPA and proceedings have been initiated, it is for the Respondent Bank to take note of such circular, if any, issued by the Reserve Bank of India or if there is any modification of the circular, and take a decision in the matter.

As already indicated, since no decision to that effect by the Respondents has been taken pursuant to the observation as made by the learned Single Judge, it is appropriate to direct the Respondent Bank to take note of the communications dated 6.10.2019, 9.1.2019 and 2.2.2019 addressed by the petitioners to the respondents in relation to the repayment of the balance amount and seeking waiver of interest and take a decision in accordance with law. Further, since the learned Single Judge in the order dated 6.8.2018 passed in W.P.(C) No.4439 of 2018 had indicated that no coercive steps be taken until such consideration is made, we direct that the respondent Bank shall not take coercive steps till the representations referred to above are considered and disposed of by them in accordance with law. To enable an appropriate consideration, the petitioners shall submit one more copy of the representations along with all details and a copy of this order to the Respondent Bank within one week from this day. The respondent Bank shall take note of the same and dispose of the representations in accordance with law within three weeks thereafter. All further actions would depend on the nature of the consideration made therein.

The petition is, accordingly disposed of.