NPA and Bad loans, Court Ex-parte order Decree

Question

► Hello! I am Dr. Eesha Sanjay Andharia. I had taken an educational loan from SBI, the government. of India, for my undergraduate studies (B.Tech at SRM University) from 2010 to 2014. 2015 was the buffer year. In 2016, we were paying alternate months. Then we continued to struggle with the payments but somehow paid as much as possible from my mother's income, when COVID hit and her salary became half. So they restructured the loan but since 2017 I have been diagnosed with schizoaffective disorder of bipolar types and had 5 relapses and many hospitalizations. We are unable to pay in those years due to cost of medications and treatment. Also, I have always lived on stipend all these years. I had applied for National postdoctoral fellowship in India but I could not get shortlisted. Now there are no sources of income and we do not have a penny to out name. The loan became NPA in 2023 when we did not receive calls as atthat time I was hospitalized and family was in turmoil. Next, in 2024, they gave a court date, but I was absent as I was informed later about it because during the dates, I had health critical issues. I will be able to pay it all up as now my health is improving, but it will be after 1.5 years only. What do I do until then. I have no money to hire a lawyer. Also, the case is in Bhavnagar, Gujarat I am in Hyderabad Telangana

Answer 1

Dear Mam, as per your query,

File an application to set aside the ex-parte proceedings citing your documented mental illness, hospitalizations, and lack of notice. Courts accept illness as a valid ground.

Ask only for time, not waiver
Request 18 months’ protection from recovery and permission to repay later in instalments, showing your intent to clear the loan once health and income stabilise.

Use free legal aid
Approach the District Legal Services Authority (DLSA) in Bhavnagar or Hyderabad—they will file the case for you free of cost and can also help negotiate with SBI.

For further details, feel free to contact our OLQ Team for a detailed discussion.

Answer 2

Dear Sir,

Application to Set Aside Ex-parte Decree

Applicable Law

Order IX Rule 13 CPC

Grounds in your case are very strong:

Serious mental illness since 2017

Multiple hospitalisations

COVID period

No wilful default

No intentional absence

Education loan (special category)

Courts are sympathetic in such facts.

NPA and Bad loans, Court Ex-parte order Decree

2 Answers

Application to Set Aside Ex-parte Decree

Applicable Law

Order IX Rule 13 CPC