Allahabad High Court
SMT. JYOTI JHANJIversusTHE STATE OF U.P. AND ANOTHER
- Decided
Holding
The court held that the bank must accept the petitioner’s deposit made on or before 28 September 2026, regularize the home loan, and discharge the recovery proceedings if the petitioner thereafter complies with payment obligations.
Summary
The petitioner, Smt. Jyoti Jhanji, sought relief from a home loan recovery proceeding initiated by Canara Bank. The bank stipulated that if the petitioner deposited the overdue amount of Rs.1,62,000 before the auction date of 28 September 2026, the loan would be regularized. The court ordered that the bank must accept the deposit made on or before that date, even if a bank employees' strike delayed operations, extending the deadline accordingly. Upon regularization, if the petitioner continues to pay installments timely, the recovery proceedings will be discharged; otherwise, they will resume. The order was communicated to the bank within 24 hours, and the petition was disposed.
Issues considered
- Whether the petitioner is entitled to deposit the overdue amount to avoid auction and have the loan regularized.
- Whether the bank is obligated to accept the deposit on the stipulated date despite potential strikes.
- Whether the recovery proceedings should be stayed pending deposit and regularization.
Subjects
- home loan
- loan recovery
- auction
- regularization
- writ petition
- banking
- strike
- compliance
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 38235 of 2026
Smt. Jyoti Jhanji
.....Petitioner(s)
Versus
The State Of U.P. And Another
.....Respondent(s)
Counsel for Petitioner(s) : Girja Shanker Mishra, Pratiksha Rai
Counsel for Respondent(s) : C.S.C., Krishna Mohan Asthana
Court No. - 2
HON'BLE J.J. MUNIR, J.
HON'BLE INDRAJEET SHUKLA, J.
Heard Ms. Pratiksha Rai, learned Counsel for the petitioner and Ms. K.
M. Asthana, learned Counsel for the Canara Bank.
It is stated by Mr. K.M. Ashthana, learned Counsel appearing for the
Bank that in the event the petitioner deposits the overdue amount in the
home loan account being a sum of Rs.1,62,000/- before the date of
auction that is to say 28th of September, 2026 with the Branch Manager
or the Authorized Officer, Canara Bank, Branch Shahjadpur Pauri
Branch, Agra, the Bank will regularize the home loan account.
The learned Counsel for the petitioner states that they are desirous of
depositing the said overdue amount within the time indicated by the Bank.
Let that be done on or before 28.09.2026.
We make it clear that the deposit if made by the petitioner shall be
accepted on 28.09.2026 until the end of banking hours and shall not be
refused on the said date. If on account of any strike by the Bank
employees about which we are informed that the Banks are not
functioning on 28.09.2026 and thereafter, the period offered by the Bank
to make good the deposit shall be extended until the date next after
resumption of work, post strike.
In the event, the petitioner after regularization of the home loan account
adheres to financial discipline and regularly deposits the due installments,
the recovery proceedings shall stand discharged. In the event of default in
WRIC No. 38235 of 2026
2
performance of any of the conditions by the petitioner, the recovery shall
proceed.
This petition is disposed of in terms of the aforesaid orders.
Let this order be communicated to the Branch Manager or the Authorized
Officer, Canara Bank, Branch Shahjadpur Pauri Branch, Agra by the
Registrar (Compliance) through the learned Chief Judicial Magistrate,
Agra within 24 hours.
(Indrajeet Shukla,J.) (J.J. Munir,J.)
September 23, 2026
S.P.
Digitally signed by :-
SANJAY PURI
High Court of Judicature at Allahabad
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