The petitioners are mother and daughter, who are aggrieved by the recovery proceedings initiated for satisfaction of the two loans availed of by them. The 1st petitioner availed a housing loan under a scheme wherein, subsidy was granted by the Government for construction of house. The 1st petitioner availed of Rs.50,000/- in the year 2006 and the loan was to be settled in 10 years as per the equated monthly instalments. The 2nd petitioner has availed of a agricultural loan of Rs.30,000/-in the year 2007, which was to be settled in 16 months, the period of which stands expired. The petitioner advances impecunious circumstances to seek a direction for satisfaction by instalments. 2. The learned counsel for the respondent Bank, on instruction submits that, the housing loan was availed of in the year 2006 and but for the deposit of an amount of Rs.1,000/-, no amounts have been deposited as per the EMI prescribed in the agreement. It is also submitted that in fact, but, for the subsidy granted, the amount due would have been doubled the principle loan availed. With respect to the agricultural loan, the respondent Bank contends that the period has in any event expired and the same has to be satisfied immediately.
3. In the circumstance of the impecunious circumstance projected by the petitioners, this Court is of the opinion that, the loan can be directed to be satisfied in instalments, with default closed. With respect to the housing loan availed of by the 1st petitioner, as per the original agreement there is a further period of 22 months in which the petitioner has to settle the entire loans. The respondent Bank shall calculate the amounts due as on today and furnish a statement to the petitioner permitting her to settle the same in EMI in the future 22 months starting from 02.07.2014. On the petitioner complying with regular payment of the instalments granted by the Bank, the recovery proceedings shall be kept in abeyance an any consecutive two defaults, the Bank shall be entitled to revive the proceedings against the 1st petitioner's property. On the entire loan be satisfied, necessarily no proceedings shall be taken against the property. On the loan being satisfied as per the instalments, the Bank shall be entitled to issue any demand for future interest which would be due in the account.
4. With respect to the agricultural loan availed of by the 2nd petitioner, the Bank shall permit the 2nd petitioner to settle it in 10 monthly instalments starting from 02.07.2014. The 2nd petitioner shall be furnished with a statement of the dues as on 15.06.2014. On the 10th instalment being satisfied, the Bank shall raise a further demand with respect to the future interest on 15.06.2014 and same shall be settled by the 2nd petitioner as the 11th instalment. The default clause as indicated above, shall apply to the 2nd petitioner.
With the above observations and directions, the Writ Petition stands disposed of.
K. VINOD CHANDRAN, JUDGE SB