The petitioners were guarantors to a cash credit facility to the tune of Rs.30 lakhs availed by one V.P. John(late) and one P.Rajagopalan for doing a business creating security interest over the property in question . But repayment could not be effected by the loanees as agreed because of downfall in the business. In the said circumstance, the respondent /Vijaya Bank proceeded with the steps against the petitioners' property under the SARFAESI Act for realisation of the due amount. The learned Counsel for the petitioners submits that the petitioners had already remitted a sum of Rs.8.87 lakhs (Rs.4.87 lakhs + 2lakhs + 2 lakhs), pursuant to Ext.P1 notice issued by the Bank, Ext.P4 order of the DRT, Ernakulam and Ext.P6 notice of the Advocate Commissioner and that earnest efforts are being taken to liquidate the entire liability at the earliest, for which some breathing time is sought for.
2. The learned Counsel for the respondent Bank submits that the total outstanding liability is nearly Rs.33 lakhs as on 17.12.2013.
W.P.(C)No.32782 OF 2014 2
3. Considering the facts and circumstances, this Court finds it fit and proper to give an opportunity to the petitioners to save their property. In the said circumstances, the petitioners are directed to clear the entire liability by way of '10' equal monthly installments, the first of which shall be effected on or before 31.12.2014, followed by similar installments to be effected on or before the last working day of the succeeding months. Subject to the above, the recovery proceedings now stated as being pursued against the petitioners and their property will be kept in abeyance. It is made clear that, if any default is committed by the petitioners in remitting any of the installments, the respondents/Vijaya Bank will be at liberty to proceed with coercive steps from the stage where it stands now, for realisation of the amount in a lump.
The writ petition is disposed of.
P.R.RAMACHANDRA MENON JUDGE lk