Patna High Court
Arnika Food Products Private LimitedversusThe Authorized Officer, State Bank of India
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The court granted the petitioners liberty to make a representation to the bank for loan restructuring, without deciding the merits of the underlying dispute.
Summary
Arnika Food Products Private Limited and two individuals filed a writ petition seeking permission to approach State Bank of India for restructuring a loan that had been classified as a non‑performing asset (NPA). The petitioners argued that they should be allowed to make a suitable representation to the bank’s senior branch manager. The High Court, without examining the merits of the loan dispute, directed that the petitioners be given a two‑week window to submit their representation. The court further ordered that the bank consider the representation strictly according to law, afford the petitioners a hearing before any decision, and complete the process within four weeks of receiving the order. Consequently, the writ petition was disposed of, with the court granting liberty to the petitioners to seek restructuring.
Issues considered
- Whether a writ court can direct a bank to consider a petitioner's request for loan restructuring without adjudicating the substantive merits of the NPA classification
- Whether the petitioners are entitled to a hearing before the bank takes any action on their representation
Subjects
- loan restructuring
- NPA
- writ petition
- bank
- civil writ jurisdiction
- representation
- hearing
- expeditious disposal
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.5692 of 2026
======================================================
1. Arnika Food Products Private Limited situated at Gidha Industrial Area,
Koilwar, District - Bhojpur (Ara), Bihar, PIN- 802314 through its Director
Dharmendra Kumar, male, aged about - 52 years, S/o - Late Raja Ram
Choudhary, Resident of - Flat No. 2B, Utility Block, Ganga Tower, LCT
Ghat, Mainpura, P.S.- Patliputra, PIN- 800001, District- Patna.
2. Smt. Charushila Devi, W/o- Late Raja Ram Choudhary, Resident of Flat No.
2B, Utility Block, Ganga Tower, LCT Ghat, Mainpura, P.S.- Patliputra, PIN
- 800001, District - Patna.
3. Smt. Vijay Laxmi Kuwar, W/o- Late Anand Prakash Choudhary, Resident of
- Flat No. 2B, Utility Block, Ganga Tower, LCT Ghat, Mainpura, P.S.-
Patliputra, PIN- 800001, District - Patna.
... ... Petitioner/s
Versus
1. The Authorized Officer, State Bank of India SME Dakbanglow Branch,
Kataruka Niwas, South Gandhi Maidan, District - Patna, PIN - 800001,
Bihar.
2. The Senior Branch Manager, State Bank of India, SME Dakbanglow
Branch, Kataruka Niwas, South Gandhi Maidan, District - Patna, PIN -
800001, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Sumeet Kumar Singh, Advocate.
Mr. Kumar Vikram, Advocate.
Mr. Raushan Kumar, Advocate.
For the Respondent/s : Mr. Binod Bihari Sinha, Advocate.
Mr. Anirudh Pd. Sinha, Advocate.
Mr. Ajay Dutt Mishra, Advocate.
Mr. Amarjeet Chaudhary, Advocate.
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 27-04-2026 Learned counsel appearing on behalf of the petitioners
submits that the petitioners may be permitted to give a suitable
representation to the Respondent-Bank seeking restructuring of
the loan which has already been classified as ‘NPA’.
Patna High Court CWJC No.5692 of 2026(2) dt.27-04-2026
2/2
2. Having regard to the same, without going into the
merits or demerits of the case, the present writ petition is
disposed of granting liberty to the petitioners to make a suitable
representation to the Respondent-Bank more particularly
Respondent No. 2 i.e. the Senior Branch Manager, State Bank of
India, SME Dakbanglow Branch, Kataruka Niwas, South
Gandhi Maidan, District-Patna, PIN-800001, Bihar herein
within a period of two weeks from today. On such
representation being made, the authority shall consider the same
strictly in accordance with law and take a suitable decision. It is
needless to mention that before passing any order the petitioner
shall be given an opportunity of hearing. The entire exercise
shall be completed as expeditiously as possible preferably
within a period of 04 weeks from the date of receipt of the copy
of this order. Any order passed shall be communicated to the
party.
3. With the above directions, the present Writ Petition
stands disposed of.
(A. Abhishek Reddy, J)
shakir/-
U
Checking your session…