Payment schedule granted for loan rescheduling, strict compliance required The court granted the petitioner an opportunity to comply with a payment schedule to be considered for loan rescheduling. The petitioner's Managing ...
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Payment schedule granted for loan rescheduling, strict compliance required
The court granted the petitioner an opportunity to comply with a payment schedule to be considered for loan rescheduling. The petitioner's Managing Director committed to paying Rs. 5 crores in two installments by specific deadlines. Failure to meet the payment schedule would result in the respondent proceeding with the original notice. The court emphasized the importance of meeting payment commitments for loan rescheduling consideration and directed to keep the notice in abeyance until the deadlines.
Issues: 1. Quashing of notice dated 26.10.2010 2. Issuance of mandamus for loan rescheduling consideration
Analysis: 1. The petitioner sought to quash a notice dated 26.10.2010 and requested a mandamus for loan rescheduling consideration. The petitioner, a borrower from the respondent-corporation, invested in a project named 'Innovative Film City.' Due to repayment issues, the respondent issued the impugned notice as the loan could not be settled despite opportunities provided by the respondent.
2. The respondents opposed the petition, stating that the petitioner had not settled the loan despite opportunities provided. The court noted that the petitioner needed to commit to paying a substantial sum towards the due amount to be considered for loan rescheduling. The petitioner's Managing Director undertook to pay Rs. 5 crores in two installments for consideration of rescheduling.
3. The respondent pointed out previous instances where the petitioner failed to pay as promised for rescheduling. The court granted an opportunity for the petitioner to comply with the undertaking. The petitioner was required to pay the first installment by 30.10.2015 and the second by 31.01.2016 for the loan rescheduling request to be considered.
4. Failure to comply with the payment schedule would result in the respondent proceeding with the notice dated 26.10.2010. The court directed to keep the notice in abeyance until the payment deadlines. Non-compliance would allow the respondent to proceed legally as per the notice without hearing any grievances from the petitioner.
5. The court disposed of the petition based on the above terms, emphasizing the importance of the petitioner meeting the payment commitments for loan rescheduling consideration.
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