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2022 (10) TMI 259 - HC - Indian LawsSeeking direction to respondent to grant extension of time for making the balance payment of the OTS - seeking direction to respondent not to take any coercive action against the properties of the petitioners, and to maintain status quo regarding the mortgaged properties pending the disposal of this Writ Petition - HELD THAT:- There is no dispute that there was COVID-19 pandemic which resulted in lockdowns in the country which continued from 24.03.2020 to 30.06.2020 preventing operation of industries and movement of men and vehicles. Even though lockdown was lifted on 01.07.2020, still the restrictions on running of factories continued for considerable period of time - According to the petitioners, for the above reason and also because the purchasers, who had agreed to purchased the properties under the agreements of sale dt. 30.04.2019 (Annexures P-6 and P-7) delayed payment of the amounts thereunder to the petitioners, it was forced to seek extension of time for making payment under the said OTS. The contention of the Bank that the time limit fixed in the OTS is final, and the same cannot be extended under any circumstances cannot be countenanced since having regard to the COVID-19 pandemic, it would have been virtually impossible for the petitioners to make the full payment by 26.09.2020 with the lockdowns in place, and the prohibition to the industrial activities being enforced by the State and Center Governments strictly in the Country - the reason for delay in the payment was on account of the circumstances beyond their control. Since the entire amount of OTS was paid, though with some delay, and the circumstances of the case justify the grant of extension of time by about six months; and for the said delay the respondent can be compensated by payment of interest; the said sale of machinery, even if true, has no bearing on this case. The time for payment of the OTS as per Annexure P-16 letter dt. 26.03.2020 shall stand extended upto 31.03.2021 subject to the petitioners paying interest @ 1 month MCLR on reducing balance w.e.f. 26.03.2020 till 31.03.2021 within four weeks from the date of receipt of certified copy of this order; on receipt of the same, the loan dues of the petitioners shall be treated as having been fully satisfied, and the documents of title deposited by the petitioners with the respondent shall be returned to the petitioners within 4 weeks of receipt of such payment. The Writ Petition is allowed.
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