The petitioner is a guarantor of a loan availed of in 25.05.2011 by the 3rd respondent; a firm in which 4th and 5th respondents are partners. The petitioner had mortgaged his property in favour of the Bank as security for the loan availed of by the respondents 3 to 5. The petitioner was aggrieved by the SARFAESI proceedings initiated, and this Court by an interim order, directed deposit of an amount of Rs.5 lakhs, which, it is stated, has been complied with. Respondents 3 to 5 appearing through counsel undertake that the entire loan will be settled on installments being granted. 2. The learned Standing Counsel appearing for the Bank submits that the loan of Rs.30 lakhs was availed in the year 2011 and there was consistent default and after adjusting Rs.5 lakhs, paid by virtue of the interim order of this Court; an amount exceeding Rs.30 lakhs is due under the account. It is also submitted that the very same property of the petitioner is mortgaged as security for a loan availed by another firm, WPC.8292/2014 : 2 :
from the respondent Bank itself, in which firm the 5th respondent again happens to be one of the partners. Considering the facts of the case and the alleged impecunious circumstances of the petitioner, this writ petition is disposed of on the following terms:-
(i) The petitioners shall produce a certified copy of this judgment before the respondent Bank within two weeks of receipt of the same.
(ii) The respondent Bank shall quantify the amounts due under the various transactions of the petitioner and inform the petitioner in writing the amounts due as on 15.06.2014.
(iii) The respondent Bank shall grant ten monthly instalments for the payment of the balance dues, starting from 08.07.2014.
(iv) Recovery proceedings shall be kept in abeyance on condition that the remittances as per this order are made without any default.
(v) On the petitioner making two consecutive defaults, the recovery steps initiated shall revive and continue.
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(vi) On the 10th instalment being satisfied, the respondent shall issue a statement of the interest accrued from 15.06.2014 which shall be satisfied by the petitioner on the 8th of the succeeding month.
(vii) On the petitioner satisfying the entire arrears, the recovery proceedings shall be unenforceable.
Writ Petition is disposed of as above, making it clear that the respondent will be free to proceed with the recovery from the state it has been directed to be kept in abeyance, if the above conditions are not complied with.
Sd/-
(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge