[Cites 4, Cited by 0]
Orissa High Court
M. Tamal Selvi Pillay & Ors vs Bank Of India Civil Township Branch on 5 February, 2026
Author: Chittaranjan Dash
Bench: Chittaranjan Dash
IN THE HIGH COURT OF ORISSA AT CUTTACK
WP(C) No.3837 of 2026
M. Tamal Selvi Pillay & Ors. .... Petitioners
Mr. Amit Prasad Bose, Adv.
-versus-
Bank of India Civil Township Branch, .... Opp. Parties
Sundargarh & Anr.
Mr. Gurudatta Kar. Panel Counsel
for the Bank
CORAM:
JUSTICE DIXIT KRISHNA SHRIPAD
JUSTICE CHITTARANJAN DASH
ORDER
05.02.2026
Order No.
01. Petition prayer reads as under:
"The petitioners, therefore pray that Your
Lordship's may graciously be pleased to admit the
writ application, issue notice to the opp. parties
call for the records from the opp. parties and
after hearing the parties issue writ /writ in the
nature of Certiorari/ Mandamus by directing
quashing of auction notice under Annexure -1 and
also direct the opp. party to accept the deposit of
Rs. 1,05,00,000/- by the petitioner through a 3rd
party and pass any other order ion the interest of
justice."(sic)
2. Learned counsel for the petitioner argues that his client is
ready and willing to pay entire amount due in terms of three
loans, namely, Rs.64.40 lakh sanctioned on 27.12.2018,
Rs.25.50 lakh sanctioned on 31.12.2018 & Rs.2.00 lakh
sanctioned on 08.04.2020 along with all the interest that has
accrued due. He alleges that Bank is not ready & willing to
accept the amount and therefore, Bank should be directed to
accept the entire amount due and rescind the auction scheduled
to be held on 25.02.2026 in terms of auction notice dated
23.01.2026.
3. Learned Panel Counsel appearing for the Opposite Party-
Bank opposes the petition contending that the petitioner is a
chronic defaulter and his loan account came to be certified as
NPA with effect from 31.03.2021 and therefore, inevitably the
bank has marked the security property for auctioning in terms of
Sections 13 & 14 of SARFAESI Act 2002. So contending, he
seeks dismissal of the Writ Petition.
Having heard learned counsel for the parties and having
perused the petition papers, we are inclined to grant a marginal
interference in the matter as under, inasmuch as the borrower is
ready & willing to make payment of the amount entirely due as
per the loan agreement before the property is being auctioned.
Learned counsel for the Petitioner-borrower also very fairly
submitted that the amount due needs to be intimated by the
bank, as on date, to which proposal learned Panel Counsel is
fairly agreeable. The interest of the loan amount along with
interest accruing thereon, and nothing beyond that, mortgage is
for securing the repayment and not for anything else. Banks are
held to be an entity under Article 12 of the Constitution of India
vide Gujarat State Financial Corporation v. Lotus Hotels Pvt.
Ltd., AIR 1983 SC 848.
4. When the borrower because of difficulty could not repay
the debts as undertaken, the lender is more than justified in
invoking the mortgage or to otherwise secure the repayment by
auctioning of the mortgaged property. Therefore, we cannot
find fault with the bank in scheduling the auction on
25.02.2026, as rightly contended by learned Panel Counsel
appearing for the Opposite Party-Bank. However, when the
borrower is ready & willing to repay, may be belatedly, the
Bank has nothing to lose, inasmuch as the delay period also
would attract interest and such other charges admissible in law.
In the above circumstances, this Writ Petition is disposed
off with the following terms;
(i) Opposite Party-Bank shall inform in writing
and over phone to the Petitioner-borrower the
entire loan amount due (there may be other
loans also) along with interest accruing due, of
course, after giving due deduction of the
amount allegedly paid on 26.12.2025 within ten
(10) days from today.
(ii) On such intimation, the Petitioner shall remit
the entire amount on or before 20.02.2026,
unconditionally.
(iii) If the amount is not remitted as indicated in the
immediately preceding direction, the scheduled
auction shall go on.
(iv) It hardly needs to be stated that, on the
remittance of entire loan amount outstanding,
the Opposite Party-Bank shall withdraw the
O.A. No.176 of 2023 pending on the file of
DRT, Cuttack and further return the mortgage
documents to the Petitioner after discharging
the same and further the auction notice shall be
rescinded.
Web copy of order to be acted upon by all concerned.
(Dixit Krishna Shripad)
Judge
(Chittaranjan Dash)
Judge
Prasant
Signed by: PRASANT KUMAR SAHOO
Designation: Personal Assistant
Reason: Authentication
Location: Orissa High Court
Date: 10-Feb-2026 14:39:08
