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Bank allowed an extension on repayment of loan, when default was due to lockdown imposed in view of COVID-19 Pandemic: High Court of Uttarakhand

Loan taken from bank should be repaid within prescribed time. In case of default the bank can issue a recovery certificate against such person. A single Judge bench comprising hon’ble Justice Manoj Kumar Tiwari, in the matter of Jamuna Prasad Sahu Vs. Almora Urban Co-operative Bank Ltd. and others (WRIT PETITION (M/S) No. 1471 of 2021), dealt with an issue where the petitioner filed a writ petition challenging the recovery certificate issued against him.

In the present case, the petitioner had taken a lone from Almora Urban Co-operative Bank Ltd. Sitarganj. The petitioner could not repay the loan in time and hench the respondent – bank issued a recovery certificate. The outstanding amount was 4,02,790/- + other charges in the said recovery citation. The counsel for the petitioner submitted that the default in repayment was due to the lockdown that was imposed due to Covid- 19 pandemic. The counsel also submitted that the petitioner was willing to pay given he is provided some reasonable time for such re- payment.

The counsel for the respondent submitted that in case petitioner agrees to deposit at least 10% of the outstanding amount within six weeks, then petitioner, then will allow the petitioner to deposit the balance amount in seven monthly instalments.

Upon the readiness shown by the petitioner to re-pay the loan and also in view of the consent given by the respondent bank, the writ petitioner was disposed of and the petitioner was allowed to repay the amount in seven monthly instalments within a particular period.

Loan taken from bank should be repaid within prescribed time. In case of default the bank can issue a recovery certificate against such person. A single Judge bench comprising hon’ble Justice Manoj Kumar Tiwari, in the matter of Jamuna Prasad Sahu Vs. Almora Urban Co-operative Bank Ltd. and others (WRIT PETITION (M/S) No. 1471 of 2021), dealt with an issue where the petitioner filed a writ petition challenging the recovery certificate issued against him.

In the present case, the petitioner had taken a lone from Almora Urban Co-operative Bank Ltd. Sitarganj. The petitioner could not repay the loan in time and hench the respondent – bank issued a recovery certificate. The outstanding amount was 4,02,790/- + other charges in the said recovery citation. The counsel for the petitioner submitted that the default in repayment was due to the lockdown that was imposed due to Covid- 19 pandemic. The counsel also submitted that the petitioner was willing to pay given he is provided some reasonable time for such re- payment.

The counsel for the respondent submitted that in case petitioner agrees to deposit at least 10% of the outstanding amount within six weeks, then petitioner, then will allow the petitioner to deposit the balance amount in seven monthly instalments.

Upon the readiness shown by the petitioner to re-pay the loan and also in view of the consent given by the respondent bank, the writ petitioner was disposed of and the petitioner was allowed to repay the amount in seven monthly instalments within a particular period.

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