The petitioner availed a cash credit facility of Rs. 35,00,000/- from the respondent Bank, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not 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'. Met with the situation, the petitioner approached this Court by way of W.P.(C) No. 10703 of 2013. The said writ petition was disposed of, vide judgment dated 12.04.2013, on the basis of the submission by the learned counsel for the petitioner that the liability will be liquidated within no time. Accordingly, Ext. P1 judgment was rendered directing the petitioner to clear the entire outstanding liability by way of 'eight' equal monthly installments, incorporating 'default clause' as well. But there occurred default again.
2. The learned counsel for the respondent Bank submits that in view of the default, the petitioner approached the Bank seeking W.P.(C) No. 28691 of 2014 : 2 :
indulgence of the Bank. After considering the facts and circumstances, the loan was 'rescheduled' and a fresh loan agreement was executed on 30.09.2013, enabling the petitioner to liquidate the liability in a phased manner. But the petitioner has not chosen to remit any amount towards the loan account. The loan account became 'NPA' again on 30.06.2014.
3. The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire outstanding amount towards the Bank. The learned counsel for the petitioner submits that the petitioner does not intend to dispute the liability or to avail the statutory remedy by approaching the DRT. The learned counsel also submits that the petitioner is ready and willing to clear the entire loan amount within the shortest possible time and that the only relief now pressed before this Court is to grant reasonable installments in this regard.
4. After hearing both the sides, the petitioner is set at liberty to discharge the entire liability by way of 'six' equal monthly installments.; the first of which shall be effected on or before the 15th of November, 2014; followed by similar installments to be effected on or before the 15th of the succeeding months. Subject W.P.(C) No. 28691 of 2014 : 3 :
to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump, from the stage where it stands now.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)