GIRISH CHANDRA TIWARI Vs. UCO BANK

JUDGEMENT

(1.) Petitioner had availed of a term loan for an amount of Rs. 14 lakhs on 12.8.2011, which was to be repaid in 84 monthly instalments alongwith 16.50% rate of interest. A sanction letter, in this regard, dated 12.8.2011 has been enclosed as Annexure-1 to the writ petition. It seems that the petitioner defaulted in payment of instalments, on account of which proceedings under Securitization & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter called as 'SRFAESI Act'), were invoked. A notice under Section 13 (2) of the SRFAESI Act dated 22.5.2013 was issued to the petitioner, calling upon him to repay a sum of Rs. 16,91,305/-, which was stated to be due from the petitioner as on 30.3.2013. It is not in dispute that the petitioner actually deposited a sum of Rs. 17 lakhs on 29.8.2013 in the loan account. The petitioner, therefore, claims that he has already deposited the amount demanded by the bank and, therefore, the petitioner is not liable to pay a sum of Rs. 1.75 lakh further to the bank and that the petitioner is entitled to issuance of No Dues Certificate from the Bank. It is further claimed that the title deeds kept as mortgage in respect of immovable assets of petitioner is also liable to be returned.

(2.) While entertaining the writ petition a counter affidavit was called. Respondent Bank has filed an affidavit, stating therein, that the petitioner had defaulted in repayment of loan amount in instalments. The petitioner's loan account, consequently, was declared as ' Non Performing Assets' (hereinafter referred to as 'NPA') on 28.2.2013. According to the respondent-bank, the interest payable by the petitioner after 28.2.2013 had not been charged from the petitioner as the loan account itself has become NPA. It is, however, claimed that once the loan account got regularised, the petitioner is liable to pay upto date interest due, apart from the other miscellaneous expenses and only thereafter, the bank will issue a No Dues Certificate and would release the title documents.

(3.) We have heard Sri K.K. Tripathi, learned counsel for the petitioner and Sri Sanjay Singh, learned counsel for the respondent-Bank.