Delhi High Court - Orders
Shikhar Microfinance Pvt Ltd And Ors vs Delhi Financial Corporation And Ors on 10 January, 2022
Author: Prateek Jalan
Bench: Prateek Jalan
$~1 (2022 Cause List)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 15242/2021
SHIKHAR MICROFINANCE PVT LTD AND ORS..... Petitioners
Through: Mr. Ashwini Kumar Mata, Senior
Advocate alongwith Mr. Pramod
Singh, Mr. Anmol Stephen,
Ms. Karan Gaur, Advocates
(9810003904).
versus
DELHI FINANCIAL
CORPORATION AND ORS ..... Respondents
Through: Mr. Sachin Datta, Senior Advocate
with Mr. Deepak Dewan, Adv. for
R-1 & 2.
Mr. Rishikesh Kumar with and
Ms. Sheenu Priya, Advocates for
R-3 & R-4(99114 83629).
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 10.01.2022 The proceedings in the matter have been conducted through video conferencing.
CM APPL. 47972/2021 (for exemption) Exemption allowed, subject to all just exceptions. The application stands disposed of.
W.P.(C) 15242/2021 & CM 47971/2021 (for stay)
1. The petitioner No. 1 is a microfinance lender. It took a loan of ₹8 Signature Not Verified Digitally Signed By:SHITU NAGPAL W.P.(C) 15242/2021 Page 1 of 4 Signing Date:10.01.2022 21:22:38 crores from the respondent No. 1-Delhi Financial Corporation ["DFC"] in the year 2017. Although payments were regularly made till July, 2019, there were defaults thereafter which led to a demand notice dated 29.10.2019 being issued by the DFC. The DFC recalled the petitioner No. 1's loan by a communication dated 20.11.2019. Although there is some correspondence towards a settlement, no settlement fructified and a notice under Section 29 of the State Financial Corporations Act, 1951 ["the Act"] was also issued on 17.08.2021.
2. By way of the present writ petition, the petitioners challenge a recovery certificate dated 09.08.2021, which was thereafter issued by the competent authority under the Act and proceedings before the Sub Divisional Magistrate ["SDM"], in which notice dated 14.09.2021 has been issued. The petitioner also assails proceedings initiated before the District and Sessions Judge, South-West District, Dwarka.
3. During the course of proceedings, Mr. Ashwini Kumar Mata, learned Senior Counsel for the petitioners, submits upon instructions from Mr. Pramod Singh, learned counsel for the petitioners, that there is no major dispute as to the computation of the amount due from the petitioners to the DFC. However, he draws my attention to a communication dated 14.08.2020 [Annexure P-9 to the writ petition] whereby the DFC had advised the petitioners to submit various documents in support of their proposal for settlement/restructuring of the loan. Mr. Mata submits that despite the aforesaid communication, the DFC has taken proceedings before the competent authority, the SDM and the District and Sessions Judge. Mr. Mata confines the relief sought in this writ petition to a direction upon the DFC to consider the petitioners' Signature Not Verified Digitally Signed By:SHITU NAGPAL W.P.(C) 15242/2021 Page 2 of 4 Signing Date:10.01.2022 21:22:38 request for a settlement.
4. As a considerable period of time has elapsed since the petitioners made their proposal, Mr. Sachin Datta, learned Senior Counsel for the DFC, who appears on advance notice, states that the petitioners may make an updated proposal for settlement which the DFC will consider. Mr. Datta further submits that the petitioners may be required to make a substantial upfront deposit.
5. Learned counsel for the parties have also referred me to the order of the SDM dated 27.12.2021 on an application of the petitioner No. 2 herein for cancellation of an arrest warrant issued pursuant to the recovery certificate dated 09.08.2021. Various conditions have been placed in the order of the SDM, pursuant to which the petitioner No. 2 was granted 15 days' time. I am informed that the proceedings are next listed on 14.01.2022.
6. Having regard to the limited relief pressed by Mr. Mata and the statement of Mr. Datta, the writ petition is disposed of with the direction that the petitioners may make a revised proposal to the DFC by tomorrow, i.e. 11.01.2022. If the DFC requires any further clarification or revision, the petitioners will provide the same. The matter of settlement is one between the petitioners and the DFC in which the Court has little role to play.
7. It is made clear that these directions do not in any manner alter the conditions contained in the order of the SDM dated 27.12.2021, nor impede the proceedings pursuant to the recovery certificate.
8. Mr. Pramod Singh, learned counsel for the petitioners, undertakes to furnish a copy of the memo of parties as filed to learned counsel for the Signature Not Verified Digitally Signed By:SHITU NAGPAL W.P.(C) 15242/2021 Page 3 of 4 Signing Date:10.01.2022 21:22:38 DFC in the course of the day.
9. The writ petition, alongwith the pending application, is disposed of with these directions.
PRATEEK JALAN, J JANUARY 10, 2022 'Bp' Signature Not Verified Digitally Signed By:SHITU NAGPAL W.P.(C) 15242/2021 Page 4 of 4 Signing Date:10.01.2022 21:22:38