The petitioner availed a cash credit facility to the tune of Rs.60,00,000/- (Rupees Sixty lakhs only) from the respondent Bank, on the strength of security interest created over the property in question. Since, the timely repayment could not be effected, the account was declared as 'N.P.A.' on 18.07.2009 and the Bank proceeded with steps under the SARFAESI Act, which in turn is under challenge in this writ petition.
2. The learned counsel for the petitioner submits that, sale of a portion of the property itself will be sufficient, so as to clear the entire dues, whereas the upset price shown in Ext.P5 sale notice itself is nearly Rs.2.10 Crores. The learned counsel however concedes that, the petitioner does not intend to dispute the liability and that the prayer is only to permit the petitioner to clear the entire liability by way of reasonable instalments.
3. The learned counsel for the respondent Bank submits W.P.(C) No.26921 of 2014 2 that, the cash credit facility to the tune of Rs.60,00,000/- (Rupees Sixty lakhs only) was availed in the year 2008. It is stated that, the business was closed down by the petitioner and there was no repayment, pursuant to which, the account was declared as 'N.P.A.' as early as on 18.07.2009. The cash credit facility was having a tenure of only one year. The total outstanding amount as on date is nearly Rs.18,50,000/- (Rupees Eighteen lakhs fifty thousand only).
4. After hearing both the sides, the petitioner is permitted to clear the liability by way of 'six' equal monthly instalments, the first of it shall be effected on or before the 7th day of November, 2014, followed by similar instalments, to be effected on or before the 7th of the succeeding months. Subject to this, further proceedings pursuant to Ext.P5 notice shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to the satisfaction of the installments, it will be open for the respondent Bank to proceed with further W.P.(C) No.26921 of 2014 3 steps for realization of the entire amount in lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp