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