The petitioner availed a cash credit facility to the tune of Rs.7,50,000/- (Rupees Seven lakhs Fifty thousand only) and a term loan of Rs.32,00,000/- (Rupees Thirty Two lakhs only) from the respondent Bank, 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 on instructions that the petitioner in fact is not routing the entire business through the Account of the Bank, which was one of the conditions to be satisfied at the time of granting the loan as agreed to. If the petitioner undertakes that the entire transaction will be routed through the Bank, the Bank is ready to accommodate the petitioner to get the loan account regularised, subject to satisfaction of the 'overdue' instalments to an extent of W.P.(C) No.33876 of 2014 2 nearly Rs.11,20,000/-(Rupees Eleven lakhs twenty thousand only). It is pointed out with reference to the cash credit facility, that the tenure is already over and the total outstanding liability is nearly Rs.8,94,000/- (Rupees Eight thousand ninety four thousand only).
3. After hearing both the sides, the petitioner is required to satisfy the entire 'overdue' amount in respect of the defaulted instalments under the term loan by way of 'four' equal instalments, the first of which shall be effected on or before 31.12.2014, followed by similar installments, to be effected on or before the last working day of the succeeding months. The 'Cash credit' facility shall be cleared by way of 'six' instalments, the first of which shall be effected on or before 31.12.2014, followed by similar installments, to be effected on or before the last working day of the succeeding months. Subject to this, the recovery proceedings shall be kept in abeyance, for the time being and the 'Term loan account' will stand regularised. The submission made by the learned counsel for the petitioner that, the entire business of the petitioner's institution will be transacted through the respondent Bank is recorded. It is made W.P.(C) No.33876 of 2014 3 clear that, if any single default is committed with regard to the satisfaction of the 'Cash credit' loan instalment or the overdue instalment of the Term loan or if any two consecutive defaults are made with regard to the regular monthly installments of the Term loan account, it will be open for the respondents 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