1. This SA was filed on 26.10.2020 by the SA applicant. Vide order dated 31.10.2020 the applicant was directed to deposit an amount of Rs. 7.00 Lacs on or before 26.11.2020 and it was further submitted on 31.10.2020 on account of impact of COVID-19 business activities were duly affected but the applicant was still ready and willing to deposit some more amount in order to settle the account in the light of letter dated 24.02.2020 Annexure 4 issued by the Respondent FI.
2. In compliance of order dated 31.10.2020 an amount of Rs. 7.00 Lacs was deposited but after that no amount stands deposited.
3. Heard arguments.
4. Considering principle of natural justice prayer for condonation of delay is allowed.
Order on Interim Relief
5. Reply to the SA was filed so the arguments on interim relief were heard. Availing credit facility is admitted in Para 2 of the SA it is submitted that the applicant approached to the Respondent FI to reduce the amount of EMI by 2/3 but the prayer was not accepted and in Para 3 it is submitted that the request was made by SA applicant to the Respondent FI to restructuring of the loan account because the account was bit NPA rather it was regular.
6. On 06.11.2019 the account of the SA applicant was declared as NPA and it is claimed as illegal.
7. Copy of Demand Notice dated 18.11.2019 is at Annexure A-2 and various issues with regard to capitalization of the interest, penal interest and illegal charges are taken in Para 5, 6 and 7 to the SA and therefore it is alleged that account was declared as NPA against the circular issued by the Reserve Bank of India.
8. In Para 8 to the SA it is submitted that possession notice dated 13.02.2020 was affixed on the subject mortgaged property, it was not published in 2 leading newspapers even it was not delivered to the applicant.
9. Ld. Counsel for the Applicant prayed for an order on interim relief on the ground that possession notice was not served upon them.
10. As per reply filed by the Respondent FI the Demand Notice is at Annexure B and Ld. Counsel submitted that at Para No. 25 to the reply details of the credit facility, sanctioned in favor of SA applicant, details of mortgaged properties and details of outstanding amount as on 15.11.2019 for each account are mentioned. Demand notice was duly served upon them.
11. Ld. Counsel further submitted that after affixing of the Demand Notice the applicant approached to them for settlement and so in the light of letter dated 24.02.2020 (Annexure D) the SA applicant was asked to deposit an amount of Rs. 16.00 Lacs on or before 28.02.2020, an amount of Rs. 4.00 Lacs on or before 25.03.2020, an amount of Rs. 4.00 Lacs on or before 25.04.2020 and remaining amount of Rs. 2,06,00,000/- on or before 25.05.2020 as the account was settled for an amount of Rs. 2,30,00,000/- against the outstanding amount of Rs. 3,56,99,685/- due as on 15.11.2019.
12. Ld. Counsel for the Respondent FI strongly objected the ground and submitted that the knowledge of taking symbolic possession was well within the knowledge of SA applicant as the settlement proposal given by the applicant was accepted through letter dated 24.02.2020 but except the amount of Rs. 16.00 Lacs and 7.00 Lacs nothing has been deposited till today whereas the Respondent FI given a concession of Rs. more than 1.00 Crore by way of settlement dated 24.02.2020.
13. Ld. Counsel for the Respondent FI further referred Annexure 8 Email addressed to Mr. R.K. Meena, Nodal Officer, RBI, New Delhi as the applicant filed a complaint before RBI and through Annexure 6, Email dated 08.05.2020 it was informed that applicant is required to deposit a total amount of Rs. 2.30 Crores as per settlement letter dated 24.02.2020 till 25.05.2020.
14. Ld. Counsel for the Respondent Bank objected the prayer of interim relief.
15. Heard arguments and perused the record.
16. As per Demand Notice dated 18.11.2019 Annexure A-2 it is a fact that asking for payment of Rs. 6,56,99,685.80/- due as on 15.11.2019 and details of outstanding amount are mentioned in Schedule C at page No. 41 of the SA.
17. At Annexure 4 copy of settlement letter dated 24.02.2020 is filed by the SA applicant himself and from this letter dated 24.02.2020 it is clear that Respondent FI compromised with an amount of Rs. 1.36 Crore approx and agreed to settle the account for an amount of Rs. 2.30 Crores. Prior to it possession notice was issued on 13.02.2020 (Annexure A-3) copy of which is affixed at the mortgaged property and so the applicant approached to the Respondent FI with a settlement proposal which was aggrieved upon by the Respondent FI.
18. Copies of various E-mails starting from 27.03.2020 to 08.05.2020 are filed on record by the SA applicant is at Annexure 6.
19. In Email dated 28.03.2020 it is admitted by the applicant that they have entered for a settlement in the month of February for an amount of Rs. 2.30 Crores but the situation is not normal as the whole country is suffering with a national disaster of COVID-19 and so applicant prayed that he is unable to arrange any kind of fund for deposit of said amount as it was difficult for them to arrange for his livelihood, for food and shelter. Detailed E-mail is reproduced here as under because it is necessary in order to show the intention of the SA applicant,
I Sunil Phophalia (Sole Prop.) Chirag Furnishing having loan account with your company, has recently gone into settlement of account in the month of February of amount "2.30 CR" of my mortgage loan account, as per the set conditions I've given/deposit the amount of "Sixteen Lacs Rupees" (1600000) in the month of February. Till situations are going normal in our country, my second EMI is due in March of "Four Lacs Rupees" (400000) out of which "fifty five thousand Rupees" (55000) I've already deposited by arranging funds from my business market. But suddenly the Virus named "COVID-19" corona virus hits the country's economy as well as the markets. All systems in our country crashes down and nowadays notification of complete lock down has been released by the States and Central Govt. from 22nd March to 14th April till further notice or this may be extended further.
Now the whole country is suffering with the national disaster now I am unable to release or arrange any kind of funds for depositing the set EMI's as per tout set conditions, because now times arranging funds for livelihood and for food/shelter is also a very big task an you are now forcing and warning for the repayments even after the notifications released by respected Finance Ministers and Reserve Bank of India for providing reliefs.
If everything would be normal soon, then I will try to release the payment as soon as possible. In this crucial period of country where Govt. are releasing funds for livelihood and betterment of society and RBI also declares the liberal policies for ease of citizens you are creating pressures and giving warnings on phone calls for the repayments, and forcibly asking for repayments, otherwise warning for cancelling of loan settlement agreement.
Is this the way of humanity, how can be you so rude where whole country stands for each and other support.
I would be waiting for you positive reply and support.
20. As per e-mail dated 30.03.2020 the applicant requested for OTS and the detailed E-mail is reproduced here as under
I would like to make you remember about Loan Settlement Application I've sent you in dated-20th February 2020.
From the period of disbursement up to two years I've continuously repay the EMI without any obstacles. But from 2018 the scenario of the markets has totally been changed & it affects of hits my business too. It's the situation of recessions or period of recession in our country due to which economy of our country has been affected very badly. This can be seen from sale figures-
2017-18 > 6CR (Approx)
2018-19 > 4CR (Approx)
1st April 2019 - 31st January 2020 > Only 71 Lacs
This can be verified from the below attached PDF (GSTR 1).
Due to this scenario I can't repay any of the EMI related to my business & in this two years of deflation my debts has also been increases to *10 Cr*
Due to high Recession period in our country all the property markets value has also been decreases up to 60%. Today my situation is almost on collapse basis & due to all this scenes I want full & Final settlement of my loan having with you company.
Today the maximum reimbursing amount from my collateral property/House from sale is *Rs. 1.95 Cr* (*including ***15 lacs *** of stamp duty) from this in hand I'll get *Rs. 1.80 Cr* & maximum moreover this *Rs. 50 Lacs* of Amount I'll Arrange from my friends and relatives as help & can settle the account on full & final settlement basis with the amount of Rs. 2.30 Cr.
But now today's situation is totally reverse/different, as per the plan I'm ready to sell my house/property, but due to the national emergency or we can say disaster in our country which leads to complete lockdown, no one is willing/interested to proceed any property purchase/sale transaction nowadays, because securing/loosing their life, so each an every indicial is now saving their funds for the livelihood as well as for the betterment of their respective families for safe & secured future.
So, now you tell me whom I can sold my property and generate funds from it.
Secondly, the surplus fund of amount "Rs. 50 Lacs" which I've to arrange from my friends and relative, in Today's situation or scenario who will come up for help in these types of matter instead of saving their own family or by putting themselves and their own life in risk.
I totally agreed, as per clause 4 and clause 9 of the settlement letter dated 24.02.2020 whereby I've agreed to pay sum of Rs. 2,30,00,000/- (Rupees Two Crores thirty lacs only) strictly as per the timelines mentioned therein. But at that time the scene/situations of markets as well as the country are different and now it's something reversed. Thus, I request for extension of time in payment of the settlement amount stands.
21. The E-mail dated 23.04.2020 forwarded by the SA applicant to the Respondent FI is sufficient to prove that the SA applicant was terrorising/threatening to the Respondent FI the said E-mail is also reproduced here as under because it is necessary to show that the borrower/defaulter who availed a benefit of Rs. 1.36 Crores under the settlement letter dated 24.02.2020 was there upon creating pressure on the Respondent FI as they were taking steps for the recovery of outstanding amount
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22. The applicant got an order on interim relief on 31.10.2020 from this Tribunal but in fact till today no further amount stands deposited and as on date of hearing on 13.07.2022 possession notice was not duly served upon them so process initiated by the Respondent FI are required to be quashed and set aside.
23. From the settlement letter dated 24.02.2020 issued by the Respondent FI it is clear that applicant was well within the knowledge of symbolic possession taken by the Respondent FI, the settlement was accepted by the Respondent FI and the Respondent FI agreed to reduce the outstanding amount by Rs. 1.36 Crores and after that he applicant started creating pressure/threatening to the Respondent FI, given various E-mails as detailed above and also filed a complaint against Respondent FI, whereas the applicant himself was at default because after getting sufficient opportunities and after getting relaxation for an amount of Rs. 1.36 Crores he failed to deposit the remaining amount vis-a-vis.
24. Accordingly the settlement dated 24.02.2020 has already been breached. So in my considered opinion the applicant is not liable to get any leniency and their prayer for interim relief is dismissed.
25. The Respondent FI is at liberty to proceed ahead as per law.
