The Madras High Court on Monday said that the defaulters cannot always use the lockdown imposed due to the Corona epidemic as a ‘magic wand’. The first bench of Chief Justice Sanjib Banerjee and Justice Senthilkumar Ramamurthy made the observation while disposing of a PIL filed by Kayalvizhi, a bidder in the auction of a flat in Sholinganallur.
The High Court heard the petition in which despite making the initial payment after buying the property in auction from the bank, the petitioner could not make the full payment due to the pandemic and sought additional time from the court.
The auction was conducted by Axis Bank’s Kodambakkam branch under the Securitization and Financial Assets and Securities Interest (SARFAESI) Act. Significantly, Kayalvizhi had made the initial payment, but she could not pay the remaining amount due to the pandemic. He requested the court to direct the bank to give more time.
The bench said that the second wave of corona was certainly an extraordinary situation, but despite the pandemic, financial transactions through digital means have been taking place. In such a situation, relief cannot be given to the petitioner by arguing the epidemic.
The bench said that at times the courts are of the view that they have extraordinary power to extend the time and at times the mercy jurisdiction is also exercised without taking into account that it may cause prejudice to the other, which the court is not in front of. On the other hand, a person who has reached the court may get extra help.
The bench said that if the law mandates that the petitioner has to pay the full amount within 90 days from the date of auction, unless there is an extraordinary circumstance, the court should not be quick to extend the time for payment as it It would be tantamount to benefiting one party.
Madras High Court said that it is true that the pandemic and the lockdown imposed in its wake may have been an extraordinary circumstance, but it is no longer extraordinary as it has been around 12 or 14 months now. The bench said the lockdown cannot be used as a magic wand by every person who has not paid the balance amount of the loan.
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