The petitioner availed of a business loan of Rs.12,00,000/- in the year 2011 and is at present aggrieved by the proceedings taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity “SARFAESI Act”) against the property mortgaged. The petitioner contends that in fact he has paid more than the Equated Monthly Instalments (for brevity “EMI”) permitted in the original loan agreement, at the rate of Rs.19,545/-, and even looking at Exhibit R1(c), it is evident that he has paid more amounts than the required instalments as on today. 2. The learned counsel for the respondent-Bank, however, submits that a mere glance of Exhibit R1(c) would show that the repayment was never in accordance with the original loan agreement and lumpsum payments were made intermittantly and the default in the EMIs as provided in the original loan agrteement would definitely attract interest and other penal clauses in the agreement, which would again hike the amounts due under the loan account.
3. It is also pertinent that at the time of admission on 27.03.2014, an interim order was passed directing deposit of 50% of the overdue amount within one week. The respondent-Bank, however, on affidavit, submits that though the overdue amount as on 27.03.2014 was Rs.1,90,067/-, the petitioner had remitted only an amount of Rs.60,000/-. However, in deference to the interim order passed by this Court, the Bank did not proceed further. Again by interim order dated 11.04.2014 the petitioner was directed to pay an amount of Rs.10,000/- on or before 20.04.2014 and Rs.10,000/- on or before 20.05.2014 in addition to the regular monthly instalments, the said order was not complied with by the petitioner. In such circumstance, the petitioner cannot be granted any instalment facility; nor the Bank be directed to regularise the loan account, is the submission.
4. At present, the learned counsel for the respondent-Bank submits, that, there is an amount of Rs.1,67,874/- due as defaulted instalment and interest thereon in the loan account. However considering the circumstances of the present case, the respondent-Bank is directed to give a statement as to the amounts due as on 15.06.2014. The same shall be satisfied by the petitioner by two instalments, on 30.06.2014 and 30.07.2014. Any future interest due from 15.06.2014 shall be intimated on the petitioner's satisfying the above instalments, which shall be satisfied on or before 14.08.2014. In the meanwhile, the petitioner shall also pay the regular EMIs on the respective due dates. If any default is committed in the instalments granted by this Court to clear off the arrears and also the EMIs as per the original agreement, the Bank shall be free to proceed with the recovery proceedings initiated. The learned counsel for the respondent-Bank submits that the proceedings pending before the jurisdicitonal Chief Judicial Magistrate's Court is now posted on 04.06.2014. That shall stand deferred for two months. If the petitioner does not comply with the conditions herein, necessarily the Bank is entitled to revive the proceedings from the stage of seeking permission to take possession of the building, before the Chief Judicial Magistate Court.
Writ petition disposed of as above. There shall be no order as to costs.
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( true copy ) Sd/- K.Vinod Chandran Judge.