The petitioner availed a cash credit facility of Rs. Three lakhs from the respondent Bank in the year 2008, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with the steps under the SARFAESI Act, after declaring the account as 'NPA'. This made the petitioner to approach this Court by filing the present writ petition.
2. The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire amount due. It is stated that the petitioner shall continue to effect the payment without fail, simultaneously pointing out that, there is absolutely no dispute whatsoever with regard to the rights and liberties of the Bank.
3. The learned counsel appearing for the respondent Bank submits that a sum of Rs.56,691/- is overdue in respect of the defaulted installments. It is stated that, unless and until the overdue amount is cleared, the loan account is not liable to be regularized. The learned counsel for the petitioner submits that the petitioner is W.P.(C) No. 29858 of 2014 : 2 :
ready and willing to clear the entire overdue amount within the shortest possible time and that only relief now pressed before this Court is to grant reasonable installments in this regard.
4. After hearing both the sides, the petitioner is permitted to clear the 'overdue' amount by way of 'four' equal monthly installments; the first of which shall be effected on before the 30th of November 2014; followed by similar installments to be effected on or before the 30th of the succeeding months. Subject to this, the loan account will stand regularised accordingly and all coercive proceedings shall be kept in abeyance. This will be in addition to the liability to clear the regular monthly installments as well. It is further made clear that, if the petitioner commits any default in remitting the overdue amount/arrears as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump, pursuing such steps, from the stage where it stands now.
The writ petition is disposed of as above.
Sd/-
P. R. RAMACHANDRA MENON, (JUDGE) kmd