The petitioner availed a housing loan of Rs. 22,00,000/- from the respondent Bank, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter. The Bank proceeded with steps under the SARFAESI Act, after declaring the account as 'NPA', which made the petitioner to approach this Court by filing this writ petition.
2. The learned counsel for the petitioner submits that the default was never wilful, but because of some frustrating pecuniary circumstances, particularly in the context of serious ailment of the wife of the petitioner, as discernible from Ext. P1. It is stated that the petitioner shall continue to effect the payment without fail, simultaneously pointing out that, there is absolutely no dispute whatsoever with regard to the rights and liberties of the Bank.
W.P.(C) No. 31774 of 2014 : 2 :
3. The learned counsel appearing for the respondent Bank submits that a sum of nearly Rs. 24.19 lakhs is outstanding towards the loan account, out of which a sum of Rs. 3.41 lakhs is overdue towards the defaulted installments and unless and until the overdue amount is cleared, the claim for the petitioner to have the loan account regularized is not liable to be entertained. The learned counsel for the petitioner submits that the petitioner is ready and willing to clear the over due amount, if some breathing time is provided in this regard by way of reasonable installments.
4. After hearing both the sides and considering the particular facts and circumstances, the petitioner is permitted to clear the 'overdue' amount by way of 'four' equal monthly installments, the first of which shall be effected on or before the 31st of December, 2014, followed by similar installments to be effected on or before the last working day of the succeeding months. Subject to this, the loan account will stand regularized and the recovery proceedings initiated against the petitioner shall be kept in abeyance. This is in addition to the liability of the petitioner to clear the regular EMIs. It is made clear that, if the petitioner commits any default in remitting the overdue installments as above or if two consecutive defaults are made in respect of the regular EMIs, the respondent W.P.(C) No. 31774 of 2014 : 3 :
Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now.
The Writ Petition is disposed of.
Sd/-
P. R. RAMACHANDRA MENON, (JUDGE) kmd