The petitioner's son, the 4th respondent, availed a loan of Rs.25,00,000/- (Rupees Twenty five 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 for the petitioners submits that the default was never wilful, but because of some unforeseen circumstances. It is stated that the petitioner does not intend to dispute the liability nor intends to avail statutory remedy by approaching the DRT.
3. The learned counsel for the respondent Bank submits that, the matter is being unnecessarily protracted at the instance of the borrower, ie. the 4th respondent, who had availed the loan. It is pointed out that, the 4th respondent had approached the DRT earlier and obtained an interim order against the steps taken by the Bank. But the condition imposed was not satisfied, under which circumstances, the interim order was vacated and later the S.A. was dismissed. Then, it was the turn of the wife of the 4th respondent, who proceeded with similar steps by approaching this Court by filing WP(C) No.19555 of 2012. The said writ petition was disposed of, directing her to satisfy the liability by way of eight equal monthly instalments. The wife of the 4th respondent also committed default and did not honour the commitment. Now, it is the turn of the mother of the 4th respondent, who has approached this Court by filing the present writ petition, who in fact is not a party to the loan transaction.
4. The learned counsel for the petitioner submits that, the borrower is admittedly the son of the petitioner. In spite of the fact that she is an octogenarian, she still considers as fit to rise the occasion and try to save her son and the properties. It is with all earnest efforts and intent, that the petitioner has approached this Court by filing the writ petition, volunteering to discharge the entire liability in a phased manner.
5. When the matter came up for admission on 22.09.2014, the following interim order was passed:
“I.A. No.12528 of 2014 Sri. Mohan Jacob George entered appearance for the 1st respondent. Service is declared as complete.
WP(C) The learned counsel for the petitioner submits that the petitioner is ready to liquidate the liability.
The petitioner is required to satisfy a sum of Rupees Two lakhs on or before 30.09.2014 to test the bonafides.”
It is stated that, the condition imposed by this Court has been satisfied by the petitioner by depositing a sum of Rupees Two lakhs within time. It is added that, the petitioner is ready and willing to wipe off the entire liability, for which some breathing time is sought for.
6. The learned counsel appearing for the respondent Bank submits that the outstanding liability is about Rs.12,00,000/- (Rupees Twelve lakhs only) as on date.
7. Considering the facts and circumstances, the petitioner is directed to satisfy the entire outstanding liability by way of 'seven' equal monthly instalments, the first of it shall be effected on or before the 30th of October, 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.
8. It is made clear that, if any single default is committed with regard to the satisfaction of the entire liability as above, 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