The petitioner stood as a guarantor to the loan availed by one of his close relatives, obtaining Rs. 14 lakhs, creating security interest over the property in question. But the repayment could not be effected promptly, when the respondent Bank proceeded with further steps by resorting to the remedy under the SARFAESI Act. It is in the said circumstances that the petitioner has approached this Court with the following prayers:
“i. Directing the respondents to grant 3 months time to pay the entire loan amount as one time settlement, and direction to the respondent to the extent of the benefit of one time settlement waiving the penal interest and interest.
ii. Issue an appropriate order directing the respondents to permit the petitioner for private sale of the security properties to enable her to pay the entire loan amount.
iii. Issue an appropriate order staying all recovery proceedings against the realization of the loan availed W.P.(C) No. 34994 of 2014 : 2 :
by the borrower 'Faizal' from the respondent and also a stay of further proceedings pursuant to Exts.
P2, P3 and P4. &
iv. Such other reliefs as this Hon'ble Court deems fit and proper in the nature and circumstances of the case.
2. The learned counsel for the petitioner submits that the entire amount due to the Bank will be cleared and that the petitioner does not dispute the liability to clear the due amount or the rights and liberties of the respondent in proceedings against the petitioner. The limited relief now pressed before this Court is grant three months time to clear the entire outstanding amount under the loan transaction.
3. Heard the learned standing counsel as well.
4. Considering the limited extent of relief sought for, this Court finds it fit and proper to grant three months' time from today to clear entire the outstanding liability. Subject to this, coercive proceedings being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that if the petitioner did not honour the commitment, it will be open for the respondents to proceed with further steps for realization of the entire amount in a lump from the stage where it stands now.
W.P.(C) No. 34994 of 2014 : 3 :
The petitioner shall produce a copy of this judgment along with copy of the writ petition before the respondents for further steps.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)