The petitioner availed a 'Cash Credit' facility from the respondent Bank on the strength of the security interest created over the property in question. Unfortunately, the commitment could not be honoured, when the respondent Bank proceeded with further steps under the SARFAESI Act, which made the petitioner to approach this Court by filing this writ petition.
2. The learned counsel for the respondent Bank submits that, the cash credit facility of ₹5 lakhs was provided to the petitioner for a period of one year on 25.5.2007. There were no proper transactions in the account and the stock also got vanished, by virtue of which, the Bank was not in a position to have the loan account regularized. It is stated that the total outstanding liability as on date is ₹5,55,434/-. It is also brought to the notice of this Court that, the Bank had given an opportunity to the petitioner to deposit a sum of ₹55,434 /- with cost and such other charges and to convert the financial assistance as a 'term loan', for the remaining sum of ₹5 lakhs, which opportunity was not availed by the petitioner.
3. The learned counsel for the petitioner submits that, the W.P.C. No. 29544 of 2014 -2-
petitioner is ready to accept the said proposal and will satisfy the sum of ₹55,434 /- plus cost and such other charges forthwith.
4. In the said circumstance, the petitioner is set at liberty to satisfy the said amount with cost and such other charges, if any, within 'two weeks' and submit an application for conversion of the facility as a term loan, upon which the same shall be considered and appropriate orders shall be passed by the respondent Bank as expeditiously as possible. Subject to this, the recovery proceedings shall be kept in abeyance for the time being. It is for the petitioner to satisfy the due amount as aforesaid, failing which, it will be open for the respondent Bank to proceed with further steps in accordance with law.
The writ petition is disposed of. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
P.R. RAMACHANDRA MENON, JUDGE.
kp/-