The petitioners had availed a financial assistance for an amount of R. 4 akhs in the year 2010 from the third respondent/Idukki District Co-operative Bank Ltd., on the strength of security interest created over the property in question. But repayment could not be effected as promised, which made the respondent Bank to proceed with further steps invoking the machinery under the SARFAESI Act. This in turn is under challenge in this writ petition.
2. The learned Counsel for the petitioners submits that the default was not because of any wilful laches or negligence, but because of some adverse circumstances. The learned Counsel for the petitioners submits that the petitioners do not intend to dispute the liability or to avail the statutory remedy by approaching the DRT. It is however assured that the entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing time is given.
3. The learned Standing Counsel for the respondent Bank submits that if the petitioners are ready to satisfy the interest W.P.(C)No.29903 OF 2014 2 and expenses as on date, which comes to Rs.1,57,744/- with further interest and expenses under such other heads till 31.03.2015, (which will come to a total of nearly Rs.1.82 lakhs), the Bank is ready to have the loan account renewed, subject to execution of proper documents in this regard for renewal.
4. The learned Counsel for the petitioners readily agrees to the said proposition and seeks for the benefit of installments. In the said circumstance, the petitioners are set at liberty to liquidate the above liability by way of '4' equal monthly installments, the first of which shall be effected on or before 20.12.2014 followed by similar installments to be effected on or before 20th of the succeeding months. Subject to this, the loan account will stand regularised/renewed on executing necessary documents and all coercive proceedings shall be kept in abeyance. This will be in addition to the liability to clear the regular monthly installments as well. It is further made clear that, if the petitioners commit any default in remitting the overdue amount/arrears as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is W.P.(C)No.29903 OF 2014 3 payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump, pursuing such steps, from the stage where it stands now.
The writ petition is disposed of as above.
P.R.RAMACHANDRA MENON JUDGE lk