Neutral Citation No. - 2025:AHC-LKO:19314 Court No. - 16 Case :- CONTEMPT APPLICATION (CIVIL) No. - 1003 of 2025 Applicant :- Eatonn Foods And Beverages Pvt. Ltd. Thru. Its Director Sri Vivek Mathur And Another Opposite Party :- Mr. Satbeer Singh Sethi Zonal Manager, Punjab And Sind Bank Lko. Counsel for Applicant :- Subhanshu Asthana,Syed Arif Abbas,Vijay Kumar Asthana Hon'ble Ashwani Kumar Mishra,J. 1. This contempt petition has been filed alleging disobedience of the order dated 01.10.2024, passed in Writ-C No.8565 of 2024. Following observations made by the Writ Court reads as under:- "The second term loan was secured by hypothecation of industrial plot no. D-4 situated at Industrial area Sandila. The petitioner has asked for increase in working capital limit by making an application on 23.07.2024 for expansion of its business and its smooth functioning. However, the respondent bank did not communicate to the e-mails dated 19.07.2024, 23.07.2024, 24.07.2024 and 29.07.2024 and kept mum over the issue of enhancement of working capital limit. The petitioner has again written a letter to the Zonal Manager on 08.8.2024 pointing out the RBI guidelines to him, however, instead of enhancing the working capital limit from Rs.15 lacs to Rs.2 Crores, the respondents have informed the petitioner that the petitioner should keep their loan accounts in a regular manner and then only approach the Bank for working capital enhancement, hence, this petition has been filed. Shri T.J.S. Makker, learned counsel on the basis of instruction and also on the basis of pleadings on record has pointed out letter issued by the Bank on 09.8.2024 to the petitioner informing him that his loan account has become NPA on 30.04.2024 and was later on upgraded only on 28.06.2024 and the Bank has informed the petitioner also that it is expected of the petitioner to at least continue payment of EMI regularly for some reasonable time before asking for increase in working capital limit from 15 lacs to 2 Crores. It has also been informed by the learned counsel appearing for the Bank that it is a commercial transaction and the Bank?s discretion should not be limited by asking for a mandamus to be issued to the Bank as has been prayed for in the writ petition. This petition is disposed of with a direction to the respondent Bank to take an appropriate decision after evaluating the risk in the commercial transaction as expeditiously as possible." 2. According to the counsel for the applicant, cash credit limit has not been enhanced and instead, proceedings under the SARFAESI Act have been initiated against the applicant by the opposite party. 3. Perusal of the order of Writ Court would go to show that there is no direction by the Writ Court to enhance cash credit limit. The Writ Court has clearly left it to discretion of the Bank after evaluation the risk in commercial transaction and take an appropriate decision. The liberty of the Bank to enhance cash credit limit or not is not curtailed in any manner by the Writ Court. In such circumstances, if cash credit limit is not enhanced by the opposite party and the proceedings under SARFAESI Act have been initiated, it cannot be said that the action of the Bank is in defiance of the order of the Writ Court. 4. The present contempt petition is, accordingly, dismissed. Order Date :- 7.4.2025 Ashok Kr. Digitally signed by :- ASHOK KUMAR High Court of Judicature at Allahabad, Lucknow Bench