RBI restructuring relief and writ interference denied where loan account failed eligibility conditions and SARFAESI remedy remained available.

Pandemic-related restructuring or moratorium relief under RBI circulars was unavailable because the loan account did not satisfy the circulars' eligibility conditions, including the relevant exposure limit. The account was treated as overdue beyond the permissible period, and the bank's system-based updation and interest entries were accepted as supporting the classification of the account as a non-performing asset from 28 February 2020. Writ interference was also declined because SARFAESI proceedings under Sections 13(2) and 13(4) were already underway and no exceptional ground such as arbitrariness or mala fides was shown to bypass the statutory remedy.

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Issues: Whether the petitioners could invoke the RBI pandemic circulars and restructuring relief in respect of the loan account; whether the classification of the account as non-performing asset from 28 February 2020 was arbitrary or retrospective; whether the writ petition was maintainable in view of the alternative remedy under the SARFAESI Act.

Analysis: The proposed one-time settlement never matured into an accepted scheme, so the petitioners could not claim relief on that basis. The account was found to have remained overdue beyond the permissible period, and the bank's explanation for the timing of system-based updation and subsequent interest entries was accepted. The account had ceased to be a standard account by 28 February 2020, and the petitioners were also found ineligible for the restructuring benefit because the exposure limit under the relevant RBI circular was exceeded. In addition, proceedings under Sections 13(2) and 13(4) of the SARFAESI Act were already underway, and no exceptional ground was made out to bypass the statutory remedy.

Conclusion: The challenge to the bank's action failed, and the petitioners were not entitled to the RBI reliefs or writ interference.

Final Conclusion: The writ court declined interference and upheld the respondents' action, leaving the petitioners to pursue the statutory remedy available under the SARFAESI framework.

Ratio Decidendi: A borrower cannot claim pandemic-related restructuring or moratorium relief unless the account satisfies the eligibility conditions of the relevant RBI circulars, and writ interference will not be granted absent arbitrariness, mala fides, or some other exceptional ground when a statutory remedy is available.

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