Blaze Marketing vs. Union Bank Of INDIA
Held
The Court allowed the petitioner to repay the outstanding amount with up-to-date interest in six equated monthly instalments, with the first due by November 20, 2022. It directed that if payments are made without default, the bank's proposal to declare the accounts as NPA and initiate recovery shall be kept in abeyance.
Facts
A partnership firm defaulted on cash credit and term loan facilities from Union Bank of India, leading the bank to issue a notice demanding repayment of over Rs. 40 lakhs and threatening to declare the accounts as Non-Performing Assets (NPA). The petitioner sought reasonable time for repayment, citing the impact of the Covid pandemic.
Key Issues
The key legal issue was whether the High Court should grant the petitioner an instalment facility and reasonable time for repayment to prevent the bank from declaring its loan accounts as Non-Performing Assets (NPA).
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE V.G.ARUN TUESDAY, THE 18TH DAY OF OCTOBER 2022 / 26TH ASWINA, 1944 WP(C) NO. 32946 OF 2022 PETITIONER: BLAZE MARKETING 10/284 -1, METTUPALAYAM STREET, PALAKAKD PALAKKAD - 678001 REPRESENTED BY ITS PARTNER JENIFFER HAROON. BY ADVS. G.HARIHARAN PRAVEEN.H. K.S.SMITHA V.R.SANJEEV KUMAR ANJALY T.A M.V.VIPINDAS GENTLE C.D. RESPONDENT: UNION BANK OF INDIA PALAKKAD MAIN BRANCH, LAKSHMI RESIDENCY SULTHANPET, COIMBATORE ROAD, PALAKKAD - 678001 REPRESENTED BY ITS BRANCH MANAGER. OTHER PRESENT: SC ADV. A.S.P.KURUP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.10.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).32946/2022 2 JUDGMENT Dated this the 18th day of October, 2022 The petitioner, a partnership firm, availed a cash credit facility and a term loan from the respondent Bank and committed default in repayment. This ultimately resulted in the petitioner being issued with Ext. P6 notice demanding repayment of the outstanding amount within seven days. Going by the notice, the outstanding amount in the cash credit is Rs.35,82,761.61 and the term loan, Rs.4,95,141. 39. By Ext. P6,
The judgment continues below.
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