The petitioner availed of a loan from the 1st respondent, for starting a small scale industrial unit. The loan was sanctioned in the year 2010 and had a repayment period of seven years. However, due to the consistent default committed by the petitioner, the respondent-Bank was constrained to initiate proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity “SARFAESI Act”). The possession of the property mortgaged was to be taken on 06.03.2014 when the petitioner approached this Court with the above writ petition.
2. On admission, this Court granted an interim order of stay, of further proceedings, on condition of payment of Rupees Two lakhs within one week and also payment of a further sum of Rupees Two lakhs within a month thereafter. Admittedly no amounts as directed by this Court have been paid and the proceedings for WP(C).No.6303 of 2014 - 2 -
possession initiated by the Bank has been successfully frustrated. However, in the circumstance of the petitioner undertaking that the petitioner shall settle the entire liability, provided instalment is granted, and in the circumstance of the sale having been stalled, it is directed that the recovery of the amounts shall be kept in abeyance while the petitioner repays the entire loan amounts in instalments as directed below.
(i) The petitioner shall produce a certified copy of this judgment before the 2nd respondent within two weeks of receipt of the same.
(ii) The 2nd respondent shall quantify the amounts due under the loan account of the petitioner and inform the petitioner in writing the amounts due as on 31.05.2014.
(iii) The 2nd respondent shall grant ten equal monthly instalments for the payment of the balance dues, starting from 20.06.2014.
(iv) Recovery proceedings shall be kept in abeyance on condition that the remittances as per this order are made without any default.
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(v) On the petitioner making two consecutive defaults, the recovery steps initiated shall revive and continue.
(vi) On the 10th instalment being satisfied, the 2nd respondent shall issue a statement of the interest accrued from 31.05.2014, which shall be satisfied by the petitioner on the 20th of the succeeding month.
(vii) On the petitioner satisfying the entire arrears, the recovery proceedings shall be unenforceable.
Writ Petition is disposed of as above, making it clear that the respondents shall be free to proceed with the recovery if the above conditions are not complied with.
vku.
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K.Vinod Chandran, Judge - true copy -