Afroz Begum Vs Axis Bank Limited, Sambalpur — Orissa HC (2026) — LawSathi Research

Afroz Begum Vs Axis Bank Limited, Sambalpur — Orissa HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Petitioner directed to pay the overdue amount to the Bank within ten days; Bank to accept the overdue amount with prescribed penalty and interest and regularize the loan account; interim restraint on coercive action against the financed vehicle until regularization.

Issue for consideration

Whether the opposite parties should be directed to reschedule the EMI after adjusting the EMI paid before delivery of the vehicle (rule nisi prayed for in the writ petition). +2 more

Court's answer

The Court directed the Petitioner to approach the Bank with the overdue amount within a period of ten days from the date of the order.

Ratio / Principle

On payment of the overdue amount, the Bank shall accept it along with the prescribed penalty and interest and shall regularize the loan account so that the Petitioner resumes paying the regular installments.

Key takeaways

Until the date of payment of the overdue amount and regularization of the loan account of the Petitioner, no coercive action shall be taken in respect of the vehicle in question.ratio¶33

Detailed headnote1 paragraphs

W.P.(C) No. 773 of 2026, High Court of Orissa at Cuttack (disposed of on 09.01.2026 by Dr. Justice Sanjeeb K Panigrahi): Petitioner Afroz Begum, holding an Axis Bank car loan of Rs.16,39,942/- repayable in 60 monthly EMIs of Rs.35,086/-, having missed the EMIs for November and December 2025 (loan account yet to be declared NPA) and facing a threatened seizure of the financed Mahindra Scorpio, had prayed for writ directions to reschedule the EMI after adjusting the EMIs paid before delivery of the vehicle and to accept the current EMI after reschedule. Instead of ordering the prayed rescheduling, the Court directed the Petitioner to approach the Bank with the overdue amount within ten days, upon which the Bank shall accept the overdue amount along with the prescribed penalty and interest and regularize the loan account so that regular installments resume; and further directed that till regularization, no coercive action shall be taken in respect of the vehicle. The Writ Petition was accordingly disposed of.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No. 773 of 2026

Afroz Begum

..…... Petitioner(s)

Mr. Kousik Ananda Guru, Adv.

-Versus-

Axis Bank Limited, Sambalpur

……. Opposite Party(s)

CORAM:

DR. JUSTICE SANJEEB K PANIGRAHI

ORDER

09.01.2026

Order No.

This matter is taken up through hybrid arrangement.

Heard.

The present Writ Petition has been filed by the petitioner with the following prayer:

“In the aforesaid facts and circumstances, the petitioner humbly prays that this Hon'ble Court may be pleased to:

ISSUE RULE NISI calling upon the opposite parties to show cause as to why a writ in the nature of mandamus/certiorari and/or any other appropriate writ/writs or order/orders and/or direction shall not be passed to reschedule the EMI after adjusting the EMI paid before delivery of the vehicle.

AND

Signature Not Verified

ISSUE FURTHER RULE NISI calling upon the opposite parties to show cause as to why a writ in the nature of mandamus/certiorari and/or any other appropriate writ/writs or order/orders and/or direction shall not be passed to accept the a current EMI after reschedule.

Digitally Signed Signed by: LITARAM MURMU Designation: P.A. Reason: Authentication Location: OHC Date: 12-Jan-2026 14:13:00

2

If the Opposite Parties fail to show cause or show inadequate or false cause, make the aforesaid rule nisi absolute.

And pass such further order/orders as this Hon'ble Court may deem just and proper in order to provide the Petitioner Complete Relief.”

Learned counsel for the Petitioner submits that the Petitioner had availed a car loan of Rs.16,39,942/- from the Opposite Party/Bank for purchasing a four wheeler (Mahindra Scorpio) repayable in 60 monthly EMIs of Rs.35,086/-. He further submits that the Petitioner is paying EMIs regularly. But, the Petitioner has failed to pay the EMIs for the month of November and December, 2025, which meants the loan account is yet to be declared NPA. He further submits that the Opposite Party/Bank is threatening to seize the vehicle in question. Hence, the Petitioner is constrained to approach this Court.

In such view of the matter and taking into account the fact of the missing of the repayment schedule, this Court directs the Petitioner to approach the Bank with the overdue amount within a period of ten days from today. In such event, the Bank shall accept the overdue amount along with the prescribed penalty and interest and regularize the loan account of the Petitioner so that the Petitioner shall pay the regular installment.

It is further directed that till the date of payment of the overdue amount and regularization of the loan account of the Petitioner,

Signature Not Verified

Digitally Signed Signed by: LITARAM MURMU Designation: P.A. Reason: Authentication Location: OHC Date: 12-Jan-2026 14:13:00

3

no coercive action shall be taken in respect of the vehicle in question.

Accordingly, the Writ Petition is disposed of.

( Dr. Sanjeeb K Panigrahi) Judge

Murmu

Signature Not Verified

Digitally Signed Signed by: LITARAM MURMU Designation: P.A. Reason: Authentication Location: OHC Date: 12-Jan-2026 14:13:00