M/S Shiv Shanti Tubesmart Private ... vs Punjab National Bank
2021 Latest Caselaw 3524 Raj/2

        HIGH COURT OF JUDICATURE FOR RAJASTHAN
                    BENCH AT JAIPUR

                 S.B. Civil Writ Petition No. 7068/2021

1.      M/s Shiv Shanti Tubesmart Private Limited, Having Its
        Registered Office At E-457, Tilak Marg, Shastri Nagar,
        Ajmer Rj. 305001. Th. Its Ajay Sharma (Director)
2.      Sh. Ajay Sharma S/o Sh. Shiv Kumar Sharma, Resident
        Of E-457, Tilak Marg, Shastri Nagar, Ajmer (Director)
3.      Sh. Alok Sharma S/o Sh. Ajay Sharma, Resident Of E-
        457, Tilak Marg, Shastri Nagar, Ajmer (Director)
                                                                    ----Petitioners
                                     Versus
1.      Punjab National Bank, Head Office Situated At Plot No. 4,
        Sector 10 Dwarka, New Delhi 110075. Th. Its Managing
        Director
2.      Punjab      National     Bank,       Through        Its   Chief   Manager
        Situated At Mcc-1, 2, Nehru Palace, Lal Kothi, Tonk Road,
        Jaipur-302015.
3.      Punjab      National     Bank,       Through        Its   Chief   Manager
        Situated At Katchurey Road, Ajmer-305001.
                                                                  ----Respondents

For Petitioner(s) : Mr.M.M. Ranjan, Sr. Adv. with Mr. J.K.

                                 Moolchandani
For Respondent(s)          :

HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA

Order

10/08/2021 Learned counsel relies on the interim order passed by this

Court in SBCWP No.8186/2021 Navratan Fashions and

Agencies Pvt. Ltd. Vs. Au Small Finance Bank Ltd & Anr.

which reads as under:-

"Learned counsel for the petitioner submits that the petitioner is one of the Directors of Pushpgiri Infrastructure Pvt. Ltd.

(2 of 3) [CW-7068/2021]

and submits that the account was declared NPA during Covid-19. Learned counsel relies on the interim order passed by this Court in S.B.CWP NO.4579/2021: Sunrise Naturopathy and Health Resort Pvt. Ltd.

Vs. State of Rajasthan wherein this Court noticed as under:-

"Learned counsel for the petitioners submits that the Supreme Court in Small Scale Industrial Manufactures Association Vs. Union of India (UOI) & Ors., Writ Petition No.476/2020 along with connected matters, decided vide order dated 23.03.2021 has vacated the interim relief granted earlier not to declare the accounts of borrowers as NPA. While deciding the case on 23.03.2021, learned counsel submits that earlier in Gajendra Sharma Vs. Union of India & Anr., the Supreme Court vide its order dated 03.09.2020 directed that the accounts which were not declared NPA till 31.08.2020 shall not be declared NPA till further orders.

Learned counsel submits that the Supreme Court also granted Moratorium during Pandemic period from March 2020 upto 31.08.2020 and further on 10.09.2020 observed relating to charging of compound interest and credit rating/downgrading facility during Moratorium Period. Learned counsel submits that in view of earlier orders, the Bank could not have declared the accounts of the petitioners as NPA till passing of the order dated 23.03.2021 as there was a Moratorium. Even thereafter, the Supreme Court has now passed an order on 23.03.2021. It is submitted that the rule relating to NPA to declare NPA of the borrowers shall have effect from 23.03.2021 only and if the borrowers' accounts become NPA after 90 days then alone the Bank or the Financial Institution would declare the account as NPA as it had not declared the petitioners' accounts as NPA, immediately on the judgment having been passed on 23.03.2021. The financial institution could not have declared the petitioners' accounts as NPA on the next date nor proceedings under Section 13(2) of the SARFAESI Act could have been issued on the said basis. Learned counsel submits that the period from 01.03.2020 upto 31.08.2020 has to be excluded and as the petitioners' accounts were not declared NPA as on 31.08.2020, the

(3 of 3) [CW-7068/2021]

subsequent period from 31.08.2020 upto 23.03.2021 has to be also unnecessarily excluded for the purpose of declaring the accounts as NPA and the period of 90 days has to be now counted from 23.03.2021.

The matter requires to be considered and examined.

Issue notice on the writ petition as well as stay application, returnable within four weeks. Notices be given 'dasti', as prayed.

In the meanwhile and till further orders, the effect and operation of order dated 27th March, 2021 shall remain stayed and the petitioners' accounts shall not be treated as NPA. The petitioners would be free to deposit the loan installments as being paid prior to March 2020."

Issue notice of the writ petition as well as stay application, returnable within six weeks.

In the meanwhile, and till further orders, the effect and operation of the pre- possession intimation notice dt. 12.07.2021 and notice dated 06.04.2021 under Section 13 (2) of SARFAESI Act, 2002 shall remain stayed."

Issue notice of the writ petition as well as stay application,

returnable within six weeks.

In the meanwhile and till further orders, the effect and

operation of notice dated 22.04.2021 shall remain stayed.

(SANJEEV PRAKASH SHARMA),J

TN/39

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