The petitioner availed of a margin money loan from the 4th respondent and is now aggrieved by the recovery steps taken for realisation of the entire margin money loan along with interest. The petitioner's contention is that the margin money loan granted by the 4th respondent, is payable only after the dues of the bank are settled. The petitioner pointedly refers to Ext.P3 agreement, which indicates that the first repayment of the margin money loan is to be made in 16 quarterly installments of Rs.15,625/- each; starting on the date of expiry of three months from the date of settling the loan account with the Bank or on expiry of 51 months from the disbursement of the loan, whichever is earlier. 2. From the records what comes forth is that, who was desirous of starting an industry, had approached the 4th respondent, who has recommended a working capital loan to the concerned Bank. A margin money of Rs.2,50,000/- is also granted, which was disbursed through the loan account with WPC.No.14008/2014 : 2 :
the Bank. The stipulation under the agreement, indicates that, the margin money loan repayment would commence only after the Bank loan expires or on expiry of the 51st month from the disbursement, whichever is earlier. But, however, admittedly, the petitioner has not paid the interest for which, the demand was raised as per Ext.P5.
3. The learned Government Pleader also points to Clause (3) in Ext.P3, which indicates that though the margin money loan amounts are to be repaid, as notified above, the petitioner, all the same, would be liable for interest @ 6% for the principal margin money loan amount; which is to be paid in quarterly rests. Only since, such condition has not been complied with; Ext.P5 demand was issued.
4. The loan having been foreclosed for reason of default in payment of interest, Ext.P5 demand has been issued. The 4th respondent cannot be faulted for such action, but however, since the learned counsel for the petitioner agrees to pay off the defaulted interest arrears, it is only proper that the margin loan amount be kept pending to be repaid as provided in Ext.P3. It is submitted that an amount WPC.No.14008/2014 : 3 :
of Rs.20,000/- has been paid by the petitioner, as per the interim order dated 03.06.2014. The petitioner shall produce a certified copy of this judgment before the 4th respondent within two weeks from the date of receipt of a copy of this judgment. The 4th respondent shall compute the arrears due on the interest component and give a statement within a week thereafter. The petitioner shall satisfy the entire arrears on or before 01.08.2014. If the arrears are so satisfied within the time stipulated, the petitioner shall be allowed to continue the margin money loan and repay it as stipulated in the original agreement; of coarse, on the petitioner satisfying any future interest demand also as provided for in Ext.P3.
Writ petition disposed of as above.
Sd/-
(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge