Deepak Rai Walia vs. State Bank Of INDIA

Held

The Court directed the petitioner to approach the bank within 15 days to obtain the details and calculations of the outstanding dues. The bank was ordered to provide these details, along with a copy of the circular relied upon for charging Non-Submission of Registration Certificate charges, within one week of receiving the petitioner's representation. The petitioner was then given two weeks from the date of receiving this information to clear the overdue amount. Upon clearance of the overdues, the respondent-bank was directed to regularize the loan account. The Court clarified that if the petitioner failed to clear the overdue amount within the stipulated time, the bank would be at liberty to proceed in accordance with law. No opinion was expressed on the merits of the case.

Facts

The petitioner, Deepak Raj Walia, filed a writ petition challenging a notice dated 14.04.2018 issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) by the respondent-bank, State Bank of India. The petitioner had availed a vehicular loan of ₹5.60 lakhs, which was to be repaid over five years. Following a default in repayment, the bank issued a notice under Section 13(2) of the SARFAESI Act on 23.10.2017, stating outstanding dues of ₹5,54,970/-. A subsequent notice under Section 13(4) was issued on 14.04.2018. During the pendency of the writ petition, the petitioner deposited ₹60,000/- and later another ₹50,000/-.

Key Issues

1. Whether the respondent-bank is obligated to provide the petitioner with the detailed calculations of the outstanding loan amount, including any charges levied, as per Section 13(2) of the SARFAESI Act and relevant circulars? The petitioner argued that the bank was not providing the necessary details and calculations of the outstanding amount, hindering their ability to regularize the loan account. The petitioner expressed readiness to regularize the account but claimed the bank's non-cooperation was an impediment. The respondent-bank contended that the petitioner was liable for Non-Submission of Registration Certificate charges at ₹2500/- per month plus Goods and Services Tax due to the default in supplying the car's registration certificate. The bank stated that upon payment of the overdue amount and these charges, the loan account would be regularized.