The petitioner availed a loan of Rs.8,00,000/- (Rupees Eight lakhs only) from the respondent on the strength of security interest created over the property in question. Since the repayment could not be effected as scheduled, the Bank proceeded with steps under the SARFAESI Act, which made the petitioner to approach this Court by filing this writ petition.
2. The learned counsel appearing for the respondent Bank submits that a sum of Rs.3,65,000/- (Rupees Three lakhs sixty five hundred only) is 'overdue' in respect of the defaulted instalments.
3. The learned counsel for the petitioner submits that the default was never wilful, but because of some unforeseen circumstances and that steps are being taken, to have the 'overdue' amount cleared, for which some breathing time is sought for. It is stated that the petitioner does not intend to dispute the liability.
After hearing both the sides, the petitioner is directed to W.P.(C) No.29587 of 2014 2 satisfy the 'overdue' amount in respect of defaulted instalments, by way of 'four' equal monthly instalments the first of it shall be effected on or before the 30th of November, 2014, followed by similar installments, to be effected on or before the 30th of the succeeding months. This shall be in addition to the liability of the petitioner to clear the regular EMIs. Subject to this, the recovery proceedings shall be kept in abeyance, for the time being and the loan account will stand regularised. On satisfaction of the 50% of the 'overdue' amount, the possession of the vehicle shall be restored to the petitioner. It is made clear that, if any single default is committed with regard to the satisfaction of the 'overdue' as above, or if any two consecutive defaults are made with regard to the regular monthly installments, it will be open for the respondent Bank to proceed with further steps for realization of the entire amount in lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp