Delhi HC Issues Notice On Plea Challenging Coercive Action Proposed By YES Bank For Non Payment of Installments [Read Order]

The Single Bench of Justice Sanjeev Sachdeva has issued notice to YES Bank Limited through its advocate Mr Ashwani Chawla.

The present plea is moved seeking court's direction to YES Bank to not to take coercive/adverse steps as proposed in its e-mails dated 25.03.2020 and 27.03.2020.

The said bank had informed the Petitioner, by such e-mails, that since the instalments for the months of January and February, 2020 are due and in case the amount due towards instalments are not paid by 31.03.2020, the account of the Petitioner shall be declared as a non-performing asset.

The Petitioner argued that in view of the RBI Circular dated 27.03.2020, particularly paragraph 5 which gives mortarium on terms of loan, respondent cannot declare the account of the Petitioner as a non-performing asset and have to defer any coercive action till 01.06.2020.

On the other hand, the counsel appearing for the bank submitted that the mortarium is applicable only with regard to instalments which fell due after 01.03.2020 and are not applicable in respect of the instalments that had fallen due as on 01.03.2020.

The court has directed the respondent bank to file its response through affidavit/email of the concerned officer.

The matter will next be taken up on April 3.

Click here to download the Order