The petitioners have availed a loan of ₹2,0583,819/- from the respondent financial institution for upgrading their Bar Hotel and Restaurant to have Star facility, creating security interest over the property in question. But the repayment could not be effected promptly, when the respondent financial institution proceeded against the petitioner by resorting to the remedy under the SARFAESI Act. This in turn is under challenge in this writ petition.
2. The learned counsel for the petitioners submits that the default was never wilful, but due to some unforeseen circumstances and that the petitioner does not dispute the liability to clear the due amount or the rights and liberties of the respondents in proceeding against the petitioners. The limited relief now pressed before this Court is to permit the petitioners to clear the 'overdue' amount, in a short period of time, either by selling the property or by way of some instalments granting some breathing time in this regard and to have the loan account regularized.
3. The learned counsel for the respondent financial institution points out that the regular monthly instalment is ₹3,13,439/- whereas the petitioners continue to be defaulters from April, 2014. The W.P.C. No. 26827 of 2014 -2-
overdue amount in respect of the defaulted instalments is nearly ₹ 21.94 lakhs; whereas the total outstanding liability is about 98 lakhs.
₹2 crores
4. After hearing both the sides, particularly, in view of the limited relief sought for, this Court finds it fit and proper to permit the petitioner to clear the 'overdue' amount by way of 'five' equal monthly instalments, the first of which shall be effected on or before the 10th day of November, 2014; followed by similar instalments to be effected on or before the 10th of succeeding months. This shall be in addition to satisfaction of the regular EMIs as well. Subject to this, the loan account will stand regularized. The coercive proceedings being pursued against the petitioners shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to repayment of the over due amount as above, or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondents to proceed against the petitioners for realization of the entire amount in a lump, from the stage where it stands now. The petitioners shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
Writ petition is disposed of.
kp/-
P.R. RAMACHANDRA MENON, JUDGE.