The petitioner availed a cash credit facility to the tune of Rupees Three lakhs from the respondent on the strength of security interest created over the property in question. Since the repayment could not be effected as scheduled, the Bank proceeded with steps under the SARFAESI Act, which made the petitioner to approach this Court by filing this writ petition.
2. The learned counsel appearing for the respondent Bank submits that the outstanding liability as on date is nearly Rs.3,97,868/ (Rupees Three lakhs ninety seven thousand eight hundred and sixty eight only), out of which a sum of Rs.1,98,668/- (Rupees One lakh ninety eight thousand six hundred and sixty eight only) is in respect of the defaulted instalments.
3. The learned counsel for the petitioner submits that the default was never wilful, but because of some compelling W.P.C.No.30743 of 2014 2 circumstances and that the petitioner does not intend to dispute the liability or the rights and liberties of the respondent Bank to proceed with steps under the SARFAESI Act. The Prayer is only to give a chance to the petitioner to have the loan account regularised, after satisfying the 'overdue' amount.
After hearing both the sides, the petitioner is directed to satisfy the 'overdue' amount in respect of defaulted instalments, by way of 'four' equal monthly instalments, the first of it shall be effected on or before the 30th of November, 2014, followed by similar installments, to be effected on or before the 30th of the succeeding months. This shall be in addition to the liability of the petitioner to clear the regular EMIs. Subject to this, the recovery proceedings shall be kept in abeyance, for the time being and the loan account will stand regularised. It is made clear that, if any single default is committed with regard to the satisfaction of the 'overdue' as above, or if any two consecutive defaults are made with regard to the regular monthly installments, it will be open for the respondents to proceed with further steps for realization W.P.C.No.30743 of 2014 3 of the entire amount in lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp