- (1.) Heard learned Counsel for the parties.
(2.) At the out set, it is relevant to mention that it has been noticed that quite often, after availing the facility of financial assistance, the borrowers hardly show interest in repayment of loan which keep on accumulating as a result of which it becomes difficult for the financial institutions to continue the financial assistance to deserving parties due to heavy blockade of money stuck up with the erring borrowers. It is not good for a financial institution to have heavy NPA[Non-performing Account]. The eradication of non-performing loans is a necessary condition to improve the economic status. If the non-performing loans are kept existing and continuously rolled over, the resources are locked up in profitable sectors; thus, hindering the economic growth and impairing the economic efficiency.
(3.) Financial assistance rendered to the company/industry or an individual by the financial institutions does not mean that it is not refundable money or is payable at the sweet will of the loanee. As a matter of fact, financial liquidity is essential failing which there is a blockade of large sums of amounts creating circumstances which retard the economic progress followed by a large number of other consequential ill effects.;