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2024 Supreme(Online)(KER) 19544
HIGH COURT OF KERALA
Dinesh Kumar Singh, J
Elizabeth Sunny – Appellant
Versus
State Bank of India – Respondent
WP(C) 23738/2024
The court affirmed that personal hardships may justify extensions in financial obligations if evidence of compliance and intent to pay is shown.
Headnote:
Extension - Writ Petition - OTS Scheme - Sections 1-5 - The court established the extension of time for payment under an OTS Scheme due to personal hardship, highlighting the importance of compliance with the terms while acknowledging the extenuating circumstances.
Fact of the Case:
The petitioner sought an extension for payment under an OTS Scheme after paying part of the required amount. The delay was due to the death of the petitioner's husband, preventing full payment.
Finding of the Court:
The court recognized the petitioner's partial compliance with the OTS Scheme and the exceptional circumstances surrounding the payment default, allowing an extension for the remaining amount.
Issues: Whether the petitioner is entitled to an extension of time to comply with the OTS Scheme despite the inability to pay the full amount due to personal tragedy.
Ratio Decidendi: The court concluded that consideration of personal hardships can warrant an extension of time for compliance with the OTS Scheme, provided that reasonable efforts to meet obligations are demonstrated.
Final Decision: Time for payment under the OTS Scheme is extended until 08.08.2024.
1.The present writ petition has been filed by the petitioner seeking extension of time for making the payment under the OTS Scheme informed vide letter dated 18.11.2023 whereby the parties agreed for an amount of Rs. 14,00,000/- towards all outstanding dues to the Bank against the petitioner.
2.The petitioner was required to pay Rs. 3,00,000/- upfront amount, which she has admittedly paid. However, the remaining amount, the petitioner has not been able to pay. In the meantime, the petitioner’s husband dies in an accident.
3.The learned Counsel for the petitioner submits that, because of the unfortunate circumstances, the petitioner could not make payment of the remaining amount of Rs. 11,00,000/- as per the OTS Scheme dated 18.11.2023 and the petitioner will make the payment of remaining amount as mentioned above within a period of one month along with applicable interest .
4.The learned Standing Counsel for the respondent Bank has disputed the said prayer of the petitioner on the ground that, once the petitioner has not complied with the terms and conditions of the OTS Scheme , the OTS Scheme is no longer in existence and it cannot be given effect to.
5.I have considered the submissions. The petitioner is not trying to run away from the OTS Scheme . In fact, the petitioner has complied part of the OTS Scheme by depositing Rs. 3,00,000/- which is not disputed by the learned Standing Counsel for the respondent Bank.
6.In view thereof, the time period of OTS Scheme is extended till 08.08.2024 for making payment of Rs. 11,00,000/- with applicable interest from 01.04.2024 till 08.08.2024. In case, the petitioner fails to make payment as directed above, the Bank shall be free to proceed against the petitioner in accordance with the law to realise the outstanding amount from the petitioner. The petitioner shall not be dispossessed from the property in question till 08.08.2024. However, if the petitioner fails to make payment as directed above, the petitioner may be dispossessed in pursuance to Exhibit P-1 notice issued to her by the Advocate Commissioner.
