The petitioner is aggrieved by the SARFAESI proceedings initiated against the petitioner for default committed in repayment of Overdraft facility availed off by the petitioner's husband as also marginal default committed in the housing loan availed of by the petitioner. The petitioner's contention is that for reason of the Overdraft facility having been defaulted, the Bank is foreclosing and proceeding with the recovery of the housing loan also. 2. The learned counsel appearing for the respondent Bank, however, submits that the Overdraft which was granted in the year 2011 had a term of one year and the limit having exceeded and the same being not regularised, as stipulated by the Reserve Bank of India, the said loan is declared as a non-performing asset. The regulation of RBI prescribes that all loans availed of by a borrower is to be foreclosed, if any of the loans had been declared as NPA and hence, the housing loan also has been proceeded against, is WPC.13017/2014 : 2 :
the argument.
3. In the context of the averments made in the writ petition regarding the impecunious circumstance as also the submission of the learned Standing Counsel appearing for the Bank that if the Overdraft account is satisfied then, necessarily the Bank would consider regularisation of the housing loan the following orders are issued.
4. In the event of the petitioner satisfying the entire arrears/default in the overdraft facility in six instalments along with the regular payment of EMIs in the housing loan on the respective due dates, there shall be a direction to the respondent Bank to regularize the housing loan account and permit the petitioner to pay the equated monthly installments as per the original agreement. If any arrears exist in the housing loan, the same also shall be cleared in the aforesaid six month period. The recovery proceedings shall stand closed for the present on the satisfaction of the arrears and also on regular EMIs being paid. If two consecutive defaults are committed during the instalment period, granted by this Court, the Bank shall WPC.13017/2014 : 3 :
proceed with the recovery proceedings initiated. First instalment shall be paid on 27.6.2014 and the balance instalments shall be paid on the 27th of the succeeding months.
Writ petition disposed of.
Sd/-
(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge