Neha Gift Emporium & Anr. v. State of U.P & Anr.

Hon'ble Siddhartha Varma,J. Hon'ble Dr. Yogendra Kumar Srivastava,J.

Heard learned counsel for the petitioner, learned Standing Counsel and learned counsel appearing for the respondent- Bank.

By means of present writ petition, the petitioners has challenged the e-auction sale notice dated 6.12.2024 issued under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 by which the respondent-Bank was intending to recover the outstanding of Rs.22,49,447.64/- due against the petitioner under the demand notice dated 6.12.2024, by auctioning the secured asset on 10.1.2025.

It is stated that the petitioners had taken a loan but the same could not be repaid as per the terms of the agreement. At the very outset, learned counsel for the petitioner has stated that the petitioner is ready and willing to deposit the amount, in case he is permitted to do so in easy instalments.

Learned counsel for the petitioner has, therefore, proposed to deposit 25% of the outstanding amount within a period of one month from today with an undertaking that the remaining amount shall be paid in next four equal monthly installments.

Learned counsel for the respondent-Bank states that the Bank is ready to accept the amount. He, however, states that the Bank has no objection if the borrowers are willing to clear the debt by paying 25% of the outstanding amount within a period of one month and the remaining amount in next four equal monthly installments. He also states that auction proceedings fixed for 28.2.2025 were not completed and no further date for auctioning the secured asset had been fixed.

In view of the above stand of the learned counsel for the parties, at this stage, without looking into the merits of the case, we deem it appropriate to afford an opportunity to the borrowers to clear the debt. The petitioner shall, therefore, approach the respondent-Bank within ten days from today and the Bank shall provide the outstanding amount to be paid by the petitioner out of which 25% shall be paid by the petitioner within a period of one month from today. The remaining amount shall be deposited in next four equal monthly installments.

Needless to say that when the last installment is paid by the petitioner, the bank shall inform the petitioner the interest amount and the other expenses which would have accrued by the last date of payment and it shall be paid along with the last installment.

We clarify that, if, the amount as has been promised to be paid by the petitioner is not deposited as per the undertaking then the Bank shall be at liberty to recover the debt pursuant to the impugned notice in accordance with law.