The petitioner has availed of a term loan as also a Cash Credit facility from the respondent Bank. The term loan, which was granted for a period of 65 months, has been grossly defaulted and the learned counsel for the respondent Bank submits that there is more than Rs.1,40,000/- due in the said loan. As far as the Cash Credit loan is concerned, the limit was Rs.50 Lakhs. Petitioner had twice exceeded such limit and the Bank had regularized the same on the petitioner paying the amounts to bring the loan within the limit of Cash Credit facility granted. However, now again, the limit has been exceeded and the Bank has submitted that the previous conduct of the petitioner does not warrant further extension of the Cash Credit facility. In such circumstances, WP(C).13342/14 2 petitioner would have to necessarily satisfy the entire loan amount, however within a specific period. 2. It is also brought to the notice of this Court by the learned counsel appearing for the respondent Bank that possession notice was taken out on 10.04.2014 and that when the Bank had attempted valuation of the property with the help of the Village Officer petitioner had approached the authorities and has obtained a stay of the proceedings on condition of the petitioner depositing an amount of Rs.5 Lakhs within 31.05.2014. The same was not complied with, is the contention of the respondent Bank. In such circumstances, if the petitioner pays an amount of Rs.10 Lakhs within three weeks from today, there shall be a stay of the proceedings initiated by the respondent Bank. However, petitioner would be liable to make the balance WP(C).13342/14 3 payment in eight monthly instalments starting from 24.07.2014. On the petitioner remitting Rs.10 Lakhs as aforesaid, Bank shall furnish a statement showing the amount due as on 30.06.2014. The first instalment shall commence from 24.07.2014 and shall be made on all 24th of the succeeding seven months. If two consecutive defaults are committed, Bank shall be entitled to revive the recovery proceedings stayed by this Court. On the condition being complied with, necessarily, the recovery proceedings will have to be closed.
Writ petition disposed of.
Sd/- K.VINOD CHANDRAN, Judge Mrcs