The petitioner had availed a housing loan of Rs. 7 lakhs and a vehicle loan of Rs. 8.5. lakhs from the respondent/UCO Bank creating security interest over the property in question. Besides the above two loans, the petitioner also availed a term loan of Rs.75,600/- (about which no reference is seen made in the writ petition). By virtue of the default on the part of the petitioner, the account of the petitioner was declared as 'NPA' on 31.03.2014 and the Bank is proceeding with the steps under the SARFAESI Act, which in turn is sought to be intercepted in this writ petition.
2. The learned Counsel for the petitioner submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. 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. It is however assured that the entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing W.P.(C)No.28973 OF 2014 2 time is given.
3. The learned Standing Counsel for the respondent Bank, on instruction, submits that a sum of Rs.8,53,600/- is 'overdue' towards defaulted installments of the first two loans and that the period of term loan is already over.
4. After taking note of the particular facts and circumstances and also the nature of the loan, this Court finds it fit and proper to permit the petitioner to clear the liability towards the 'overdue' amount in respect of the first two loans by way of 'four' equal monthly installments, the first of which shall be effected on or before 30.11.2014, followed by similar installments to be effected on or before 30th of the succeeding months. With regard to the third loan ( i.e.term loan of Rs.75600/-), the petitioner is permitted to clear the entire liability with subsequent interest by way of 'six' equal monthly installments, the first of which shall be effected on or before 30.11.2014, followed by similar installments to be effected on or before 30th of the succeeding months. Subject to the above, the first two loan accounts will stand regularised and all coercive proceedings shall be kept in abeyance. This will be in addition to W.P.(C)No.28973 OF 2014 3 the liability to clear the regular monthly installments in respect of the first two loans as well. It is further made clear that, if the petitioner commits any default in remitting the 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.
P.R.RAMACHANDRA MENON JUDGE lk