The petitioner availed a housing loan of ₹4 lakhs, an overdraft facility of ₹1.80 lakhs and a term loan of ₹5.50 lakhs from the respondent Bank creating security interest over the property in question. But the repayment could not be effected promptly, when the respondent Bank proceeded against the petitioner by resorting to the remedy under the SARFAESI Act which in turn is under challenge in this writ petition.
2. The learned counsel for the petitioner submits that the default was never wilful, but due to some unforeseen circumstances and that the petitioner does not dispute the liability to clear the due amount or the rights and liberties of the respondents in proceeding against the petitioner. The limited relief now pressed before this Court is to permit the petitioner to clear the 'overdue' amount in respect of housing loan granting some breathing time in this regard and to have the same regularized. The learned counsel also submits that the petitioner would like to clear the entire liability towards the other two loans in a phased manner by way of some reasonable instalments.
3. The learned counsel appearing for the respondent Bank W.P.C. No. 28716 of 2014 -2-
submits on instructions that, the overdue in respect of the housing loan as on 8.11.2014 is about ₹61,569/- and if the petitioner satisfies the same the housing loan account can be regularized. The total liability in respect of the overdraft facility is nearly ₹2.38 lakhs and that of the term loan is nearly ₹4.31lakhs as on 8.11.2014.
4. After hearing both the sides, particularly, in view of the limited relief sought for, this Court finds it fit and proper to permit the petitioner to clear the 'overdue' amount in respect of the housing loan within 'one month', subject to which the housing loan will stand regularized. The total liability in respect of the other two loans shall be cleared by way of '7' monthly instalments. Initial six instalments shall be of ₹1 lakh each, the first of which shall be effected on or before the 15th day of December, 2014; followed by similar instalments to be effected on or before the 15th of succeeding months. The seventh instalment shall be the requisite amount so as to top up the balance. Subject to the repayment of liability as above, the coercive proceedings being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to repayment of the over due amount (in respect of the housing loan) as above, or if any two consecutive defaults are made with regard to the regular EMIs in respect of the W.P.C. No. 28716 of 2014 -3-
housing loan and if any default is committed with regard to the repayment of the entire liability in respect of the other two loans, it will be open for the respondent Bank to proceed against the petitioner for realization of the entire amount in a lump, from the stage where it stands now. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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