The petitioner admittedly had availed of two loans; one Term Loan of Rs.95 Lakhs and another Open Cash Credit with a limit of Rs.15 lakhs, from the 1st respondent. Obviously there was default committed and at present the dues in both the loans together comes to Rs.12.5 lakhs. The petitioner is aggrieved by the proceedings taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity “SARFAESI Act”) and the dispossession threatened from the property mortgaged to the Bank.
2. The learned Standing Counsel for the respondents submits that there is a default of Rs.9.5 lakhs in the Term Loan account and also exceeded the limit in the Cash Credit facility, by Rs.3.3 lakhs.
3. In the circumstance of the petitioner undertaking to wipe off the actual arrears as on today within a period of one month, it is deemed fit that the SARFAESI proceedings be kept in abeyance, so that the petitioner can be given an opportunity to satisfy the WP(C).No.11595 of 2014 - 2 -
default made in the loan accounts, to enable regularization of both the said loans. In such circumstance, if the petitioner deposits the arrears as on 31.05.2014 on or before 30.06.2014, the respondent-Bank shall consider regularization of the accounts and then the repayment shall be as per the original terms entered into between the petitioner and the 1st respondent.
Writ petition stands disposed of with the above directions and if the conditions above are not complied with, the Bank would be at liberty to proceed with the recovery initiated. Needless to say that the recovery proceedings shall be kept in abeyance till 30.06.2014. The parties are directed to suffer their respective costs.
vku.
Sd/-
K.Vinod Chandran, Judge ( true copy )