The petitioner's deceased husband had availed a 'Housing loan' and a 'Business loan' from the respondent Bank creating security interest over the property in question. By virtue of sudden demise of the petitioner's husband, there occurred default in repaying the installments. In the said circumstances, the Bank is proceeding with steps under the SARFAESI Act, which in turn is sought to be intercepted in this writ petition.
2. The learned Counsel for the petitioner submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. It is stated that the husband of the petitioner was repaying the installments promptly till his death and due to frustrating circumstances, the petitioner could not effect the payments thereafter. The learned Counsel for the petitioner submits that the petitioner does not intend to dispute the liability or to avail the statutory remedy by approaching the DRT. It is assured that the W.P.(C) No. 23079 of 2014 : 2 :
entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing time is given.
3. The learned Standing Counsel for the respondent Bank, on instructions, submits that as on 30.09.2014, a sum of Rs.1,35,927/- and Rs. 68,112/- are 'overdue' towards the defaulted installments in respect of the 'housing loan' and the 'business/commercial loan', out of the total liability of Rs. 5.18 lakhs and Rs. 2.26 lakhs respectively.
4. After taking note of the particular facts and circumstances and also the nature of the loan, this Court finds it fit and proper to permit the petitioner to clear the liability towards the 'overdue' amounts in respect of both the loans by way of 'six' equal monthly installments, the first of which shall be effected on or before 15.12.2014, followed by similar installments to be effected on or before the 15th of the succeeding months. Subject to this, the loan accounts will stand regularised and all coercive proceedings shall be kept in abeyance. This will be in addition to the liability to clear the regular monthly installments as well. It is further made clear that, if the petitioner commits any default in remitting the overdue amount/arrears as above or in the event of W.P.(C) No. 23079 of 2014 : 3 :
committing two consecutive defaults in respect of the regular E.M.Is payable under the loans, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump, pursuing such steps, from the stage where it stands now.
The writ petition is disposed of as above.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)