Petitioner challenged recovery proceedings on an education loan, alleging NPA misclassification and demanding OTS. Court granted four-months for phased repayment or OTS; bank can pursue recovery thereafter.
Direction to Opposite Parties/Bank to give four months time to petitioner to settle the loan amount in a phased manner/One Time Settlement.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF ORISSA AT CUTTACK W.P(C) No. 17154 of 2022
Bimal Kumar Sahoo
…. Petitioners
Mr.Rajeet Roy, Adv.
-versus-
Uco Bank, Kolkata & others …. Opposite Parties Mr.S.K.Swain,Adv. For Bank
CORAM:
DR. JUSTICE S.K. PANIGRAHI
Order No.
ORDER
13.07.2023
1 . This matter is taken up through hybrid arrangement.
2 . Heard learned counsel for the petitioner and learned counsel for the Bank.
3 . The petitioner has filed this writ petition seeking direction from this Court to the opposite parties to settle the education loan account vide A/C No. 11550601400018 under One Time Settlement.
4 . Learned counsel for the petitioner submits that the petitioner availed a study loan of Rs.4,00,000/- from the opposite party No.2 for pursuing his B.Tech in Computer Science . In the said loan his parents stood as guarantor and co-guarantor to the loan. Since his father expired in
Signature Not Verifiedthe year 2014 his financial condition became precarious
Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 30-Jul-2023 11:02:39
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and due to his non-employment, he could not pay the EMI in time.
5 . Learned counsel for the petitioner further submits that on 20.09.2017 the opposite party/Bank served a notice on the petitioner informing that his account has been classified as NPA and demanded an amount of Rs.3,55,000/- which is contrary to the RBI guidelines. He further submits that the Bank should have intimated the petitioner regarding the classification of NPA as and when said account was classified as NPA. Had the account not been classified as NPA, the petitioner could have ended up payment of lesser amount i.e. Rs.3,50,000/-
6. Learned counsel for the opposite parties/Bank submits that due to Non-payment of Equated Monthly Installments, the Demand Notices were sent to the borrower/co-borrower Smt. Kalpana Sahoo, the mother of the petitioner on different dates under Annexure-B/1 Series showing the total loan dues of Rs.10,49,467/- with interest calculated up to 19.08.2022. Now, it has come to Rs. 10,92,779/- including interest. It is further submitted that since the mother of the petitioner is receiving the family pension after death of her husband and also the petitioner himself is engaged in business they are quite capable of repaying the loan amount due to the Bank.
Signature Not Verified
Digitally Signed Signed by: LINGARAJ BEHERA Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 30-Jul-2023 11:02:39
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That apart, the instant case is staff/staff related loan account. Considering the entire sequence of facts in toto, the request of the petitioner for compromise settlement of his loan account does not fall within the ambit of the extent guidelines of the opposite parties/ Bank.
(Dr. S.K. Panigrahi)
Judge Signature Not Verified
Digitally Signed Signed by: LINGARAJ BEHERA LB Designation: Sr. Stenographer Reason: Authentication Location: Orissa High Court,Cuttack Date: 30-Jul-2023 11:02:39
Page 3 of 3
3 issues framed by the court
Whether the Court can direct a bank to grant One Time Settlement or phased repayment arrangement for an education loan.
Whether the NPA classification and demand notice by the bank were in conformity with RBI guidelines and intimation requirements.
Whether the petitioner has the capacity to repay the loan given the financial difficulties and family pension receipt.
Bimal Kumar Sahoo
Uco Bank, Kolkata
S.K. Panigrahi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
