IMPORTANT POINTS:
A loan is granted in terms of the contract, and grant of one time settlement or re-scheduling of the loan amount is really a modification of the contract, which can only be done by mutual consent of the parties, vide Section 62 of the Contract Act, 1872. The Court cannot alter the terms of the contract.

JUDGMENT :

Manikumar, J.

Instant writ appeal is filed against the judgment in W.P.(C) No.9126 of 2020 dated 16.09.2020, by which, a learned single Judge of this court, taking note of the default committed by the petitioner, including under the OTS Scheme, declined to grant the reliefs sought for, and dismissed the writ petition. Operative portion of the judgment reads thus :

“3. On a consideration of the facts and circumstances of the case and the submissions made across the Bar, I find that although the petitioner has approached the respondent bank seeking the OTS Scheme, and the said benefits were extended to the petitioner, the petitioner did not make necessary payments under the scheme within the time granted by the bank. I also note that although the bank had unilaterally extended the time for paying the balance amounts under the OTS Scheme till 30.08.2020, the petitioner did not make the entire payment stipulated as per the OTS Scheme within the said extended period. This being the case, I am of the view that this Court cannot compel the respondent bank to extend the benefit of OTS Scheme to the petitioner by extending the time limit for accepting payment under the scheme. This Court would be loath to force a contract on an unwilling respondent.

Accordingly, taking note of the default committed by the petitioner, including under the OTS Scheme, I am of the view that the prayers sought for in the writ petition cannot be granted. The writ petition, therefore, fails, and is accordingly, dismissed.”

2. Facts leading to this appeal are that, appellant/petitioner, the borrower, availed a term loan of Rs. 2 Crores from the State Bank of India (SARB)-respondent, for construction of a business concern by name, “Mangalath Hotels & Resorts” at Chadayamangalam. Eighty-eight month's time has been fixed by the bank for repayment. Due to financial difficulties, he committed default. Therefore, the bank has classified the account as Non Performing Asset (NPA) and provided OTS benefit to the appellant.

3. Appellant has further stated that as per the OTS scheme, an amount of Rs. 54,52,359/- has to be paid by him. The bank has also granted three installments for repayment of the loan amount through OTS scheme, i.e. 5% has be remitted within 30 days of the approval of the OTS, 20% of the approved OTS amount, have to be paid within 60 days, and the balance amount has to be paid within 6 months of the approval of OTS.

4. Appellant has further stated that after approval of the OTS scheme on 24.09.2019, he complied with the conditions and deposited the two installments, i.e., 5% of Rs.2,73,000/- and 10% of Rs. 10,90,090/-, within the time prescribed. According to him, as per the scheme, the balance amount of Rs. 40,89,269/- has to be paid on or before 23.03.2020. Unfortunately, when it became due, due to pandemic situations, he was unable to make the payment.

5. On 21.03.2020, the Excise Commissioner, Thiruvananthapuram, issued an order closing all Bar Hotels, Beer parlours etc., in Kerala. Moreover, on 24.04.2020, the District Collector, Kollam, invoking the powers envisaged under the Disaster Management Act, 2005, issued an order for taking over the hotel of the appellant, for converting the same as isolation wards to the persons returning from abroad for quarantine facilities. The rooms were provided to persons on rental basis and the District Collector had authorized the Tahsildar and Village Officer concerned to collect rent from the persons, who occupy the hotel rooms.

6. Appellant has contended that though the District Collector had received rent amount from the persons, who had occupied the rooms in the hotel, the same has not been given to the appellant as per the agreement. Hence, he filed W.P.(C) No.11527 of 2020 seeking for a direction to grant Rs.16,60,260/- to him, as room rent, without any delay. The said writ petition was disposed