Authority: High Court of Odisha, Cuttack

Order Date: 07.08.2026

Case Overview

  • Parties: Petitioner – Konark Enterprises, Jajpur; Opposite Parties – The Authorized Officer, HDFC Bank Limited, Bhubaneswar and another.
  • Case Number: WP(C) No.24978 of 2026, CNR No. ODHC010582372026.
  • Nature of Proceeding: Writ petition filed by the petitioner seeking release of a hypothecated vehicle repossessed by the bank and re‑phrasing of the loan account.
  • Background: The petitioner obtained a vehicle loan from HDFC Bank and made regular EMI payments up to February 2026. Post‑February 2026, the petitioner defaulted on the monthly installments. The bank issued a notice dated 22.06.2026 demanding payment of the entire outstanding balance in a single instalment.
  • Petitioner’s Prayer: The petitioner requested the Court to admit the writ, direct the bank to release the repossessed vehicle, extend a 30‑day period to repay the overdue amount in equal instalments, and re‑phrase the loan account. The petitioner also expressed willingness to pay the entire overdue amount at once if permitted.
  • Counsel’s Submissions: Counsel for the petitioner argued that the petitioner is ready to settle the overdue amount in one go and sought a direction for the bank to allow regular EMI payments thereafter.
  • Court’s Observations: The Court noted that the petitioner had not approached the bank for repayment or re‑phrasing before filing the writ. Consequently, the Court decided to dispose of the petition at the admission stage, granting liberty to the petitioner to approach the bank with a payment proposal.

Final Outcome

  • The petitioner must approach HDFC Bank within four weeks from the date of this order, offering to pay the entire overdue amount in a single instalment as per the bank’s direction.
  • Upon receipt of the overdue amount within the stipulated four‑week period, the bank shall refresh the loan account and re‑fix the monthly instalments.
  • The bank shall consider releasing the repossessed vehicle to the petitioner, subject to full payment of the overdue amount.
  • The Court warned that any further default by the petitioner in paying EMIs will empower the bank to initiate legal action against the petitioner in accordance with applicable law.
  • The writ application is hereby disposed of.

Topics: Banking, Vehicle Finance, Court Order