Sadasiba Nayak Vs Chief Manager, Stressed Assets… — Banking and Recovery | Orissa HC (2025)

Sadasiba Nayak Vs Chief Manager, Stressed Assets… — Banking and Recovery | Orissa HC (2025)

What the court decided

AI extract

Outcome

Writ Petition disposed of in the spirit of mediation: Petitioners directed to approach the Bank with the overdue amount of Rs.10,00,000/- within one month, upon which the Bank shall consider and regularize the loan accounts; failing that, the Bank is free to proceed in accordance with law. The prayer for rephrasing the loan accounts with one-year installment time was not granted as such.

Issue for consideration

Whether this Court should direct the Opposite Parties to rephrase the Petitioners' loan accounts and allow them one year to repay the loan amount by easy installments. +1 more

Court's answer

Disposing of the Writ Petition in the spirit of mediation, the Court directs the Petitioners to approach the Opposite Parties/Bank along with the overdue amount of Rs.10,00,000/- (Rupees ten lakhs) within one month from today.

Ratio / Principle

This Court is not inclined to entertain the Writ Petition at this stage because a notice under Sections 13(2) of the SARFAESI Act, 2002 has already been issued against the Petitioners.

Key takeaways

If the Petitioners approach the Bank with the overdue amount within the stipulated time, the Bank shall consider the same and regularize the loan account of the Petitioners.ratio¶21
If the Petitioners fail to approach the Bank with the overdue amount within the stipulated time, the Opposite Parties/Bank is free to proceed in accordance with law.ratio¶21

Detailed headnote1 paragraphs

SARFAESI Stage — Writ Petition Disposed of Directing Borrower to Approach Bank with Overdue Amount: Two Petitioners (described as low-paid Central Government employees) who defaulted on EMIs, whose loan accounts were declared NPA on 31.01.2024 and against whom a notice under Sections 13(2) of the SARFAESI Act, 2002 had already been issued, sought a direction to the Bank to rephrase their loan accounts with one year's time for repayment by easy installments. The Court (Dr. Sanjeeb K Panigrahi, J.) held it was not inclined to entertain the Writ Petition at that stage, but disposed of it 'in the spirit of mediation': the Petitioners were directed to approach the Bank with the overdue amount of Rs.10,00,000/- (Rupees ten lakhs) within one month, whereupon the Bank was to consider the same and regularize the loan accounts; on failure, the Bank was left free to proceed in accordance with law.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No. 29497 of 2025

Sadasiba Nayak & Anr. ..…... Petitioner(s)

Mr. Bigyan Kumar Sharma, Sr. Adv. along with associate

-Versus-

Chief Manager, Stressed Assets Recovery Branch, State Bank of India & Anr. ……. Opposite Party (s) Mr. Dillip Kumar Mohapatra, Adv.

CORAM:

DR. JUSTICE SANJEEB K PANIGRAHI

ORDER

06.11.2025

Order No.

This matter is taken up through hybrid arrangement.

Heard learned counsel for the parties.

In filing this Writ Petition, the Petitioners seek a direction from this Court to the Opposite Parties to rephrase the loan accounts of the Petitioners and they may be allowed one year time to make repayment of the loan amount by easy installments.

Signature Not Verified

Learned counsel for the Petitioners submits that the Petitioners have availed loans from the Opposite Parties/Bank. He further submits that since the Petitioners are low paid employee of the Central Government, they could not deposit the monthly installment in time.

Digitally Signed Signed by: LITARAM MURMU Designation: P.A. Reason: Authentication Location: OHC Date: 07-Nov-2025 17:52:01

2

Learned counsel for the Bank submits that since the Petitioners have defaulted in making payment of EMI, the loan accounts of the Petitioners declared NPA on 31.01.2024. He further submits that notice under Sections 13(2) of the SARFAESI Act, 2002 has already been issued against the Petitioners.

Considering the facts and circumstances of the case, since the notice under Sections 13(2) of the SARFAESI Act, 2002 has already been issued against the Petitioners, this Court is not inclined to entertain this Writ Petition at this stage. However, this Court disposes of this Writ Petition in the spirit of mediation. Accordingly, the Petitioners are directed to approach the Opposite Parties/Bank along with the overdue amount i.e. Rs.10,00,000/- (Rupees ten lakhs) within one month from today. In such event, the Bank shall consider the same and regularize the loan account of the Petitioners. If the Petitioners fail to do so within the time stipulated hereinabove, the Opposite Parties/Bank is free to proceed in accordance with law.

Accordingly, the Writ Petition is disposed of.

( Dr. Sanjeeb K Panigrahi) Judge

Signature Not Verified

Murmu Digitally Signed Signed by: LITARAM MURMU Designation: P.A. Reason: Authentication Location: OHC Date: 07-Nov-2025 17:52:01