VEENA B. S. Vs. FEDERAL BANK LTD.

JUDGEMENT

(1.) The challenge is to the coercive proceedings of loan recovery in terms of the provisions of SARFAESI ACT, 2002. This Court vide interim order dtd. 30/6/2023 had said as under:

(2.) Learned counsel for the petitioners submits that the condition for payment having been complied with albeit with some delay, if a period of six months is granted, her client would pay the entire outstanding amount along with interest accruing due thereon. Learned Sr. Panel Counsel appearing for the bank opposes the proposal of the petitioners contending that all that is public money and therefore the borrower cannot seek extension of the period for making repayment of loan; the Court also cannot grant more time since that would amount to rewriting the loan agreement. So contending he seeks dismissal of the writ petition.

(3.) Having heard the learned counsel for the parties and having perused the petition papers, this Court is inclined to grant limited indulgence in the matter inasmuch as the writ court cannot turn a Nelson's Eye to the woes of honest borrowers who have exhibited bona fide by making substantial payment towards the loan account. After all the interest of bank is to get the loan amount back with interest and nothing beyond that. If a period of six months is granted, no prejudice would be caused to the bank because even during that period interest would accrue. Denying innocuous relief of the kind would cause injustice to the citizens which the Court of justice has to avoid happening.