HC asks Yes Bank to reply on plea urging no coercive action on failure to pay loan installments

The Delhi High Court Wednesday directed Yes Bank to file its response on a plea by a private company seeking direction not to take any coercive steps for its failure to pay loan installments.

Justice Sanjeev Sachdeva, who conducted the proceedings through video conferencing, issued noticed to the bank on the plea by Anant Raj Limited.

The court said let the response be filed in the form of an affidavit or e-mail of the concerned officer of the bank and listed the matter for further hearing on April 3.

The company, in its plea, sought direction to the bank not to take coercive or adverse steps as proposed by it in its e-mails of March 25 and 27.

The bank has informed the company via e-mails that since its instalments for January and February, 2020 are due, if the amount is not paid by March 31, the petitioner's account shall be declared as a non-performing asset, the plea said.

The petitioner's counsel contended that in view of the March 27 circular issued by the Reserve Bank of India (RBI), which gives moratorium on terms of loan, the bank cannot declare the company's account as a non-performing asset and have to defer any coercive action till June 1, this year.

The counsel for the bank argued that the moratorium is applicable only with regard to instalments which fell due after March 1, 2020 and are not applicable on instalments due before that.

He sought time to respond to the plea.