01Facts
The petitioner borrowed ₹46,36,000 from respondent no. 3, Hinduja Housing Finance Ltd., in instalments to construct a house, which was mortgaged as security. After financial difficulties led to repayment default and the account becoming an NPA, the NBFC initiated recovery proceedings and sought to auction the house.
pp. 1–2, paras 2–3The petitioner’s challenge before the DRT was dismissed on 22 October 2026 after an earlier stay was vacated. The NBFC then scheduled an auction for 3 November 2026; the High Court stayed that auction on 29 October 2026, noting that the secured asset was the petitioner’s residence and that he was willing to repay the dues.
pp. 1–2, paras 2–3The NBFC stated that ₹52,36,184 was outstanding as of 31 October 2026. The petitioner proposed paying ₹10,00,000 within one month and the balance in quarterly instalments; the NBFC sought an initial payment of 50% of the outstanding amount.
pp. 2, paras 5–702Issues
i.Whether the petitioner should be permitted to repay the outstanding loan through an initial payment followed by instalments, rather than the 50% initial payment sought by the NBFC.
pp. 2, paras 5–8ii.Whether the NBFC should be directed to unseal the secured house and restore possession to the petitioner while repayment proceeds under the Court’s terms.
pp. 3–4, paras 8–1003Law Applied
The judgment cites no statute, precedent, or specific legal doctrine.
The Court fashioned case-specific repayment terms after considering the petitioner’s willingness to discharge the outstanding amount. It directed that non-compliance with those terms would entitle the NBFC to recover the remaining or entire amount in one instalment.
p. 3, para 8(D)04Reasoning
The Court considered the petitioner’s willingness to repay the dues, the NBFC’s demand for an initial payment of 50%, and the fact that the secured asset was the petitioner’s residence.
pp. 2–3, paras 3–8It resolved the competing repayment proposals by requiring a ₹10,00,000 payment by 4 December 2026, followed by eight quarterly instalments of ₹5,00,000 toward the stated balance of ₹42,36,184, with the final instalment to include the remaining balance and accrued interest. The Court made the arrangement conditional by permitting recovery of the remaining or entire amount in one instalment if the petitioner breached any term.
pp. 3, para 8(A)–(D)05Holding
The writ petition was disposed of on the repayment terms set by the Court.
pp. 3–4, paras 9–11The NBFC was directed to remove the seal from the house within 24 hours and hand possession to the petitioner; the pending application was also disposed of.
pp. 3–4, paras 9–11Original Court PDF
SARJEET YADAVvsSTATE OF UTTARAKHAND
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