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The petitioner, Nura Devi, a widowed woman, approached the Rajasthan High Court challenging coercive recovery proceedings initiated by the respondent banks in respect of outstanding loan dues. The matter involved requests for reasonable time and protection against immediate recovery action, considering the petitioner’s personal and financial circumstances.
Case Type
Banking Law / Loan Recovery & Equitable Relief
Date of Decision
20 August 2018
Court
High Court of Judicature for Rajasthan, Jodhpur
Case No
S.B. Civil Writ No. 2388/2017 (connected with S.B. Civil Writ No. 12100/2015)
Outcome
Interim Protection Granted; Time Allowed for Repayment
Bench
Hon’ble Mr. Justice Sandeep Mehta
The primary issue before the Court was whether the petitioner, in light of her status as a widow and financial hardship, could be granted reasonable time to repay the outstanding loan amounts and be protected from immediate recovery measures by the banks.
The Court considered the submissions made on behalf of the petitioner seeking humanitarian and equitable relief. It also took note of the banks’ position and the need to balance recovery of public money with fairness and proportionality in enforcement actions.
Recognising that writ courts can grant equitable interim relief in appropriate cases, especially where immediate coercive action may cause undue hardship, the Court found it appropriate to allow time to the petitioner while preserving the banks’ statutory rights.
Courts may grant equitable relief and reasonable time for repayment in banking recovery matters where compelling personal circumstances exist, while ensuring that lenders’ legal rights remain fully protected.
The High Court observed that, considering the petitioner’s status as a widowed woman, it would be just and proper to grant her one year’s time to clear the outstanding dues. At the same time, the Court clarified that failure to comply within the granted period would entitle the respondent banks to proceed with recovery strictly in accordance with law.
The Court granted interim protection to the petitioner and allowed one year’s time from the date of the order to repay the entire loan dues. The interim order restraining recovery proceedings was directed to continue till the next date of hearing. The banks were granted liberty to proceed with recovery if the petitioner failed to comply within the stipulated time.
