The petitioner was the original borrower, to which loan, the 4th respondent was the guarantor. While proceedings were initiated for the recovery of the dues committed in the said loan account, the petitioner was abroad and the proceedings were initiated against the 4th respondent. The 4th respondent filed a writ petition before this Court and got Ext.P5 order. The installments granted therein, is being remitted by the guarantor, is the contention. While so, the petitioner contends that the very same recovery was proceeded against him as per Ext.P3 and there is no reason why the Bank should do that, when the guarantor is complying with Ext.P5 order of this Court. 2. The learned Standing Counsel for the Bank submits that both the petitioner and the 4th respondent WPC.14953/2014 : 2 :
had availed off two different loans. The petitioner; an amount of Rs.6 lakhs and the 4th respondent an amount of Rs. 1.5 lakhs. The original borrowers also stood as guarantors for each other. The installments granted as per Ext.P5 is with respect to the loan availed of by the petitioner herein and guaranteed by the 4th respondent. The proceedings, now contemplated under Ext.P3, is issued against the petitioner as a guarantor for a loan availed of by the 4th respondent. In the circumstances of the loan availed of by the petitioner being covered by Ext.P5, nothing further is be done on that count.
3. However, if the petitioner pays off the loan leading to the present proceedings, in six monthly installments, starting from 18.07.2014 and followed up with payments on the 18th of each succeeding month, the recovery proceedings shall be kept in abeyance. If two consecutive defaults are committed, the recovery proceedings shall be revived from the stage at which it has been kept in abeyance by this Court. On the loan WPC.14953/2014 : 3 :
being satisfied as directed above, necessarily, the recovery proceedings shall abate. Needless to say that the recovery would be subject to the contentions of either parties in the Civil Suit said to have been filed by the petitioner herein.
Writ petition disposed of.
Sd/-
(K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge