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2021 (9) TMI 1459 - HC - Indian LawsRestructuring of financial assistance to MSME sector - Seeking direction to Respondent to implement the Restructuring Package already granted by the Respondent to the Petitioner No.1 - seeking direction to Respondent not to take any further action under the Securitisation Act and to maintain Status Quo in the matter against the Petitioners and the Properties in question. It is the case of the petitioners that though the respondent-Bank issued the sanctioned letter for restructuring on 30th March, 2021 as per the notice issued under Section 13(2) of the SARFAESI Act, the account was classified as NPA account as on 27th February, 2021. HELD THAT:- Having heard the learned advocates for the respective parties and considering the material on record as well as the provisions of the SARFAECI Act, it appears that the respondent-Bank has issued the sanctioned letter dated 30th March, 2021 permitting the restructuring of the existing facility provided to the petitioner No.1. As per the circular issued by the Reserved Bank of India on 6th August, 2020 which provides for restructuring of advances to MSME sector stipulates that the restructuring of the borrower account is required to be implemented by March 31, 2021 - On perusal of the Circular, it is clear that the respondent-Bank has issued the sanctioned leter on 30th March, 2021 which is prior to the last date i.e. March 31, 2021. The interpritation of the respondent-Bank therefore is not legal and tenable by interpriting the circular that the restructuring of the borrower account is to be implemented by March 31, 2021 means all the formalities are required to be completed by March 31, 2021. Once respondent-Bank has issued the sanction letter of March 30, 2021, it would mean that the restructuring of the borrower acount is implemented subject to the fulfilment of the terms and conditions of the sanction letter. It is apparent from the contents of the letter dated 06.07.2021, the respondent-Bank has not stated as to which of the terms and conditions as per the sanction letter of the restructuring is not fulfilled by the petitioners - In view of the facts and taking into consideration the fact about the issuance of the sanction letter dated 30th March, 2021 as well as considering the RBI circular dated 6th August, 2020, it cannot be said that the restructuring of the borrower account is not implemented by March 31, 2021. The impugned action of respondent-Bank to cancel the sanction letter dated 30th March, 2021 as well as the letter dated 6th July, 2021 informing the petitioners about such cancellation are hereby quashed and set aside - petition allowed.
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