The petitioner availed a loan of ₹12.50 lakhs from the respondent financial institution in the year 2011 creating security interest over the property in question. But the repayment could not be effected promptly, when the respondents 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, granting some breathing time in this regard and to have the loan account regularized.
3. The learned counsel appearing for the respondent financial institution submits on instructions that, the total outstanding liability to close the loan account as on 10.12.2014 is nearly ₹18.75 lakhs out of which a sum of ₹6.15 lakhs is in respect of the defaulted instalments after giving due credit to the amount of ₹50,000/- paid pursuant to the interim order dated 3.9.2014.
W.P.C. No. 23628 of 2014 -2-
4. After hearing both the sides, this Court finds it fit and proper to permit the petitioner to clear the 'overdue' amount by way of 'four' equal monthly instalments, the first of which shall be effected on or before the 31st day of December, 2014; followed by similar instalments to be effected on or before the last working day of the succeeding months. This shall be in addition to satisfaction of the regular EMIs as well. Subject to this, the loan account will stand regularized. 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 as above, or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondents 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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