2020 (7) TMI 774 - HC - Indian Laws

Seeking extension of time for an additional period of 90 days for the payment of OTS amount - petitioner could pay only 20% of the OTS amount and balance 80% of the amount - prevailing Covid-19 lockdown situation - HELD THAT - In this case, it is to be seen that the Hon'ble Apex Court has extended the limitations under several statutes, where there is no provision for condonation of delay also, till further orders or till the lockdown is lifted. The Hon'ble Full Bench of this Court also extended interim orders taking into consideration of the prevailing Covid-19. The situation is extraordinary affecting the entire humanity and judicial notice has already been taken of the same. Learned Standing Counsel could not dispute the situation due to Covid-19 prevailing in the country - In view of extraordinary circumstances, we are of the opinion that the petitioner can be granted time for payment entire due under OTS till the end of August, 2020. The petitioner is permitted to pay 25% of the outstanding amount by the end of this month i.e., July, 2020 and balance 75% of the amount, by the end of August, 2020. Failing which, it is open for the respondent Bank to take appropriate action, in accordance with law - petition disposed off.

Summary

Issues:
1. Extension of time for payment under OTS scheme due to Covid-19 impact.

Analysis:
The petitioner filed a Writ Petition seeking a mandamus to declare the respondent Bank's refusal to consider their representations for extending the time for payment under the OTS scheme as illegal. The petitioner had requested an additional 90 days to pay the OTS amount due to the Covid-19 pandemic affecting their business operations. The petitioner had only paid 20% of the amount and sought further extension. The respondent Bank argued that the time for payment had already been extended for all borrowers until 30.06.2020 due to Covid-19 and no further extension was possible. They highlighted that the petitioner had not shown any payment during the previous extension period.

The Court noted that the prevailing Covid-19 situation had led to extraordinary circumstances, impacting businesses and individuals across the country. While acknowledging that the OTS scheme had a specific time frame for payment, the Court considered the exceptional nature of the pandemic. They referred to the Supreme Court's extension of limitations under various statutes and the Full Bench of the Court extending interim orders due to Covid-19. The Court recognized the unique challenges posed by the pandemic and the need for flexibility in such circumstances.

In light of the extraordinary situation, the Court granted the petitioner an extension to pay the entire outstanding amount under the OTS scheme until the end of August 2020. The petitioner was directed to pay 25% of the amount by the end of July 2020 to demonstrate good faith, with the remaining 75% to be paid by the end of August 2020. Failure to comply would allow the respondent Bank to take appropriate legal action. The Writ Petition was disposed of with no costs awarded, and any related pending petitions were dismissed accordingly.