The petitioner availed a business loan of Rs. Three lakhs 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 and the Bank proceeded with steps under the SARFAESI Act, after declaring the account as 'NPA'. This 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 and that earnest efforts are being taken to clear the entire overdue amount. 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. The learned counsel for the petitioner submits that the petitioner is ready to discharge the liability, if the benefit of One Time Settlement Scheme is extended to the petitioner.
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3. The learned counsel appearing for the respondent Bank submits that as of now 'OTS Scheme' is not available and if the petitioner approaches the Bank with a concrete proposal to wipe off the liability, it will be considered by the Bank. It is stated that as on date a sum of Rs. 3.51 lakhs is outstanding towards the loan account, out of which a sum of Rs. 2.53 lakhs is due towards the defaulted installments. 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 extent of overdue amount amount in relation to the figure as to the outstanding liability, the petitioner is permitted to clear the 'entire outstanding liability' by way of 'eight' equal monthly installments, the first of which shall be effected on or before 31.12.2014, followed by similar installments to be effected on or before the last working day of the succeeding months. Subject to this, confirmation of sale which is stated as scheduled to be conducted on 26.12.2014 shall be kept in abeyance. In view of the submission made by the respondent Bank that if the petitioner approaches the Bank by filing a proper petition, making a W.P.(C) No. 32681 of 2014 : 3 :
tenable/sustainable offer to liquidate the entire liability under the 'One Time Settlement Scheme', the petitioner is set at liberty to approach the Bank by filing necessary representation in this regard. This shall be done, at the earliest, at any rate, along with satisfaction of the first installment as above, on which event, it shall be considered and appropriate orders shall be passed by the competent authority of the Bank. It will be for the petitioner to satisfy the liability accordingly. It is made clear that, if the petitioner commits any default in remitting the amounts as above, the respondent 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.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)