The petitioner availed an overdraft facility from the respondent Bank, for an amount of Rs.7,00,000 (Rupees Seven lakhs only), on the strength of security interest created over the property in question. Since, the timely repayment could not be effected as scheduled, the account was declared as N.P.A. 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 the default was never wilful, but because of some unforeseen circumstances.
3. The learned counsel appearing for the respondent Bank submits on instructions, that the physical possession of the property has already been taken over. No transaction is being effected by the petitioner, though the business is stated as being run. It is also pointed out that, the entire outstanding liability as on 11.10.2014 is about Rs.9,32,677/- (Rupees Nine lakhs thirty W.P.(C) No.26675 of 2014 2 two thousand six hundred and seventy seven only) with subsequent interest and cost.
4. The learned counsel for the petitioner submits that the petitioner does not intend to dispute the liability to pay or as to the rights and liberties of the Bank to proceed with the steps under the SARFAESI Act. The prayer is only to enable the petitioner to satisfy the outstanding liability by way of equal monthly installments.
5. Considering the facts and circumstances, the petitioner is permitted to clear the entire outstanding liability by way of 'ten' monthly installments. Nine instalments shall be at the rate of Rupees 'One lakh each' and the 10th (last) instalment shall constitute the balance amount to top up the figure to clear the entire liability. The first instalment shall be effected on or before the 30th of October, 2014, followed by the other installments, to be effected on or before the last working day of the succeeding months. All further proceedings pursuant to Ext.P1 shall be kept in abeyance, subject to satisfaction of the liability as above.
5. It is made clear that, if any default is committed with W.P.(C) No.26675 of 2014 3 regard to the satisfaction of the due amount as above, it will be open for the respondent Bank to proceed with further steps, including by way of paper publication in the relevant provisions of law.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp