The petitioner had availed a housing loan of Rs.25 lakhs from the respondent/Federal Bank creating security interest over the property in question. By virtue of the default on the part of the petitioner, the Bank is proceeding with the steps under the SARFAESI Act, which in turn is sought to be intercepted in this writ petition.
2. The learned Counsel for the petitioner submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. The learned Counsel for the petitioner submits that the petitioner does 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 Counsel for the respondent Bank submits that the writ petition itself has become infructuous in so far as the relief prayed for is to grant six months' time to satisfy the W.P.(C)No.10779 OF 2014 2 arrears and to have the loan account regularised. The writ petition is dated 08.04.2014 and hence the period is already over. It is also pointed out that the petitioner had approached this Court before initiation of the SARFAESI proceedings and since no amount has been satisfied so far, the Bank has moved the machinery under the SARFAESI Act, as on date. The learned Counsel also points out that the total outstanding liability in respect of defaulted installments itself is more than Rs.10 lakhs.
4. The learned Counsel for the petitioner submits that 'Urgent notice on admission' to the respondents by speed post was ordered on 09.04.2014 and that the matter is listed thereafter for the first time only today. It is also stated that the petitioner has made alternate arrangements to see that the entire overdue amount is cleared forthwith; assuring and undertaking that the same will be cleared on or before 30th of this month.
5. In the light of the above submission and also considering the nature of loan, being in the housing sector, this Court finds it fit and proper to grant one more opportunity to the petitioner to W.P.(C)No.10779 OF 2014 3 have the loan account regularised. Accordingly, the petitioner is directed to satisfy the entire overdue amount in respect of defaulted installments on or before 30th of this month. Subject to this, the loan account will stand regularised 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 petitioner commits 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 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