Disposed

M. Kumar Naidu, v. Dewan Housing Finance Corpn. Limited

Karnataka HC22 Jul 2024WP/5267/2023

Case brief

AI extract

What is this about?

Petitioner sought extension of time under a one-time settlement with DHFL, having belatedly paid installments due to financial difficulty. The court directed the bank to honour the OTS letter dated 17.12.2022 and close the loan account, subject to petitioner paying additional 9% interest on the delayed amount within two weeks; the bank was to return original property documents within two weeks of

What did the court decide?

Bank directed to give effect to OTS letter dated 17.12.2022, close loan account and return original property documents, subject to petitioner paying additional 9% interest on the delayed period within

M. Kumar Naidu, Vs Dewan Housing Finance Corpn. Limited — Banking and Recovery | Karnataka HC (2024)

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1 - NC: 2024:KHC:28893 WP No. 5267 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 22^ND DAY OF JULY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.5267 OF 2023 (GM-RES)

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BETWEEN:

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M. KUMAR NAIDU, S/O DORRESWAMY AGED ABOUT 52 YEARS, R/AT NO.108/122, 2^nd CROSS, 2^nd MAIN, CHIKKALAKSHMI LAYOUT, BENGALURU – 560 029 ALSO AT NO. 48/105, 8^th CROSS, RANGADASAPPA NAGAR, JAYANAGAR 4^th MAIN ROAD, BENGALURU – 560 030. …PETITIONER (BY SRI. D.R.RAVISHANKAR, SENIOR COUNSEL FOR SRI. SWAROOP.S., ADVOCATE)

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AND:

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Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA

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DEWAN HOUSING FINANCE CORPN. LIMITED, NO.1347/36, 2^nd FLOOR, RAGIGUDDA CIRCLE, SOUTH END MAIN ROAD, 9^th BLOCK, JAYANAGAR, BENGALURU – 560 069. REPRESENTED BY ITS MANAGER (AUTHORISED OFFICER) HEAD OFFICE AT WARDEN HOUSE, 2^nd FLOOR, SIR P M ROAD, FORT, MUMBAI – 400 001.

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…RESPONDENT

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(BY SRI. S LAKSHMINARAYANA, ADVOCATE)

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THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT RESPONDENT BANK TO EXTEND THE TIME FOR PAYMENT OF OTS AMOUNT AS

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2 - NC: 2024:KHC:28893 WP No. 5267 of 2023

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PER OTS LETTER DTD 17.12.2022 BY TOTAL PERIOD OF SIX MONTHS FROM THIS DAY IN RESPECT OF LOAN ACCOUNT BEARING NO.21400044466 MAINTAINED BY THE PETITIONER, WITH THE RESPONDENT – BANK ANNEXURE-E.

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THIS PETITION, COMING ON FOR ORDERS , THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

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ORAL ORDER

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(PER: THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR)

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In this petition, petitioner seeks the following reliefs:

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“i) Issue a writ in the nature of mandamus by directing respondent bank to extend the time for payment of OTS amount as per OTS letter dated 17.12.2022 by total period of six months from this day in respect of loan account bearing No.21400044466, maintained by the petitioner, with the respondent bank. (Annexure-E).

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ii) Issue such other direction as this Hon’ble Court may deem fit, under the circumstances of the case.”

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2. Heard learned counsel for the petitioner and learned

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counsel for the respondent and perused the material on record.

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In addition to reiterating the various contentions urged

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in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the One Time

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3 - NC: 2024:KHC:28893 WP No. 5267 of 2023

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Settlement (OTS) offer made by the respondent – bank on 17.12.2022, in terms of which the petitioner was liable to pay the amounts in installments. It is submitted that on account of financial difficulties being faced by the petitioner, the petitioner was not in a position to comply with the timelines mentioned in the OTS and the same was paid by the petitioner on 27.07.2023 and the delay in paying the 2^nd and 3^rd installments were due to bonafide reasons, unavoidable circumstances and sufficient cause. It is submitted that in order to compensate the respondent – bank and mitigate the loss caused to the respondent – bank on account of the delayed payment, petitioner has kept ready a sum of Rs.5,95,048/calculated at the rate of 6% per annum on the amount that was paid belatedly by the petitioner and the respondent – bank may be directed to accept the same and close the loan account of the petitioner. It is also submitted that in addition to the aforesaid sum of Rs.5,95,048/-, the petitioner shall pay an additional sum by way of interest at 9% for the delayed period by the petitioner within a period of two weeks from today. It is therefore submitted that the respondent – bank may be directed to close the loan account by giving effect to the OTS scheme.

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NC: 2024:KHC:28893 WP No. 5267 of 2023

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Learned counsel for the respondent – bank submits that having regard to the undisputed fact that the petitioner had not paid the entire amount in terms of the OTS scheme, no indulgence can be shown in favour of the petitioner and the petition is liable to be dismissed.

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A perusal of the material on record will indicate that it is the specific assertion on the part of the petitioner that having paid the 1^st installment as per the OTS scheme, it was not possible for the petitioner to pay the 2^nd and 3^rd installments within the stipulated period due to financial difficulties and on account of bonafide reasons, unavoidable circumstance and sufficient cause. In addition thereto, the petitioner has demonstrated his bonafides in attempting to mitigate the loss caused to the respondent – bank due to the delayed payment and by compensating the respondent – bank in this regard by not only handing over a DD in a sum of Rs.5,95,048/- towards 6% of the interest for the delayed period but has also undertaken to pay an additional 9% interest on the delayed payment within a period of two weeks from today.

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Under these circumstances, having regard to the

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special / peculiar facts and circumstances of the instant case and

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5 - NC: 2024:KHC:28893 WP No. 5267 of 2023

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without making the present order as a precedent, I deem it just and appropriate to dispose of this petition directing the respondent – bank to give effect to the OTS scheme vide letter dated 17.12.2022 and close the loan account of the petitioner subject to the petitioner paying additional 9% interest for the belated payment for the delayed period within a period of two weeks from the date of receipt of a copy of this order.

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In the result, I pass the following:

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ORDER

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(i) The petition is hereby disposed of.

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(ii) The petitioner has paid Rs.5,95,048/- by DD to the respondent towards 6% interest for the belated payment.

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(iii) In addition thereto, petitioner is directed to pay an additional amount calculated at 9% for the delayed period within a period of two weeks from the date of receipt of a copy of this order.

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(iv) Immediately upon petitioner paying the aforesaid sum calculated at 9% for the delayed period, the respondent – bank shall give effect to the OTS scheme vide Annexure – E dated 17.12.2022 and close the loan account of the

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NC: 2024:KHC:28893 WP No. 5267 of 2023

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petitioner and return all the original property documents back to the petitioner within a period of two weeks from the date of

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closure of the loan account.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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List No.: 1 Sl No.: 52

M. Kumar Naidu, v. Dewan Housing Finance Corpn. Limited

Case brief

What is this about?

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M. Kumar Naidu, v. Dewan Housing Finance Corpn. Limited

Case brief

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