The petitioner availed of a housing loan from the respondent Bank in the year 2011. The repayment of the same was to be made by way of equated monthly instaments in 10 years and the loan period expires only in the month of June 2021. However, default having been committed in the account, proceedings were taken under the SARFAESI Act which is challenged in the above writ petition. 2. It is trite that no proceedings under the SARFAESI Act can be challenged under Article 226 of the Constitution of India. However, considering the undertaking of the petitioner that the entire defaulted amounts would be paid within a period of ten months, there shall be a direction that the proceedings initiated against WP(C).9894/14 2 the petitioner's property shall be kept in abeyance on the following conditions:
(i). The Bank shall issue a statement of accounts showing the defaulted amounts as on 31.5.2014.
(ii). The Bank shall grant ten monthly instalments for the payment of the balance dues, starting from 23.06.2014.
(iii). Recovery proceedings shall be kept in abeyance on condition that the remittances as per this order are made without any default.
(iv) On the petitioner making two consecutive defaults, the recovery steps initiated shall revive and continue.
(v). On the tenth instalment being satisfied, the Bank shall issue a statement of the interest accrued from 31.05.2014 which shall be satisfied by the petitioner on the 23rd of the succeeding month.
(vi). On the petitioner satisfying the entire arrears, the recovery WP(C).9894/14 3 proceedings shall be unenforceable.
3. Needless to say that in addition to the instalments to satisfy the defaulted amounts, petitioner shall also be liable to pay the regular equated monthly instalments due on each month. If the above conditions are complied with and the defaulted amounts are satisfied in 10 equal monthsly instalments then, necessarily the loan account shall be regularized and the petitioner shall be permitted to pay off the entire amounts as agreed upon initially; subject to further compliance of all equated monthly instalments.
Writ petition disposed of.
Sd/-
K.VINOD CHANDRAN, Judge Mrcs //True Copy//