The petitioner availed an 'agricultural term loan' of `8,00,000/- (Rupees eight lakhs only) from the respondent Bank, agreeing to satisfy the same by way of instalments within a period of 7 years. Admittedly, there occurred default and the Bank proceeded with further steps. The petitioner approached the Bank for restructuring the loan, which was sanctioned and the petitioner was required to satisfy the enhanced EMI. This was also not satisfied and in the said circumstances, the Bank proceeded with further steps. While so, the petitioner sought for the benefit of 'One Time Settlement Scheme', which was considered and the petitioner was required to satisfy a sum of `8.5 lakhs in toto. In spite of granting such relief, the opportunity was not utilised and hence the present proceedings under the SARFAESI Act. The petitioner is before this Court seeking to intercept the said proceedings, also seeking for regularisation of the loan account.
2. Adv. Sri. K.Chandran Pillai, Senior counsel appearing WP(c). No. 30197 of 2014 2 for the Bank submits that, the petitioner's attempt is not genuine. The learned counsel for the petitioner submits that the prayer is only to enable the petitioner to regularise the loan, permitting to clear the 'overdue' amount and continue to effect regular EMIs.
3. The learned Senior counsel for the Bank submits that the total 'overdue' amount in respect of the defaulted instalments is nearly 2.4 lakhs.
4. After hearing both the sides, the petitioner is directed to satisfy the 'overdue' amount by way of 'three' equal monthly instalments, the first of which shall be effected on or before the 10th of December, 2014, followed by similar installments, to be effected on or before the 10th of the succeeding months. This shall be in addition to the liability of the petitioner to clear the regular EMIs. Subject to this, the recovery proceedings shall be kept in abeyance, for the time being and the loan account will stand regularised. It is made clear that, if any single default is committed with regard to the satisfaction of the 'overdue' as above, or if any two consecutive defaults are made with regard to the regular monthly installments, it will be open for the respondent Bank to proceed with further steps for realization of WP(c). No. 30197 of 2014 3 the entire amount in lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
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