Rajasthan High Court
Bhagawan Dairy Proprietor ... vs A.U. Small Finance Bank Ltd on 29 October, 2021
Bench: Inderjeet Singh
HIGH COURT OF JUDICATURE FOR RAJASTHAN
BENCH AT JAIPUR
S.B. Civil Writ Petition No. 12206/2021
Bhagawan Dairy Proprietor Bhagwan Sahai
----Petitioner
Versus
A.u. Small Finance Bank Ltd.
----Respondent
For Petitioner(s) : Mr. Amit Ratnawat
For Respondent(s) :
HON'BLE MR. JUSTICE INDERJEET SINGH
Order
29/10/2021
Counsel for the petitioner submits that the issue involved in
this writ petition has been considered by the Co-ordinate Bench of
this Court in the matter of M/s Sunrise Naturopathy and Health
Resort Pvt. Ltd. Vs. State of Rajasthan (S.B. Civil Writ Petition No.
4579/2021) where-in on 08.04.2021 following order was passed;
"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.
(2 of 3) [CW-12206/2021]
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
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".
In that view of the matter, issue notice to the respondent(s)
returnable on 15.11.2021.
In the meanwhile and till further orders, the effect and
operation of the order dated 10.07.2021 (Annexure-3) as well as
subsequent proceedings shall remain stayed and the petitioner's
account shall not be treated as NPA and the petitioner would be
free to deposit the loan instalments as being paid prior to March,
2020.
(3 of 3) [CW-12206/2021]
List along with S.B. Civil Writ Petition No. 11761/2021 on
15.11.2021.
(INDERJEET SINGH),J
Upendra Pratap Singh /293
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