The petitioner has taken a loan to purchase a vehicle and admittedly committed default, upon which the respondent Bank initiated recovery proceedings. The petitioner undertakes that the petitioner would clear of the defaulted arrears in instalments and then he may be permitted to pay in accordance with the original agreement. Effectively, the petitioner seeks regularization of the loan account. 2. I have heard the learned Standing Counsel appearing for the respondent Bank, who submits that no regularization is possible and that the petitioner is a chronic defaulter. The petitioner's loan period expires on 07.09.2014. The petitioner has defaulted an amount of more than Rs.4,00,000/- and the total arrears as on today would come to Rs.5,63,858/-. The learned Counsel for the respondent asserts that no extension of the period could be W.P.(C) No. 15290 of 2014 2 granted and if the petitioner clears of the entire arrears within that period, then definitely no proceedings would be initiated.
3. In view of the specific undertaking given by the petitioner, this Court is of the opinion that the petitioner can be granted time to pay off the entire arrears in seven monthly instalments starting from 30.07.2014 and followed upon on the 30th of every succeeding month. On the satisfaction of the entire instalments as directed above, the respondent Bank shall issue a further demand for future interest, which shall be satisfied as the 8th instalment. If one default is committed in the instalments afore granted, the respondent Bank would be entitled to revive the recovery proceedings from the stage at which this Court has kept it in abeyance.
The Writ Petition is disposed of.
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K. VINOD CHANDRAN, JUDGE SB // True Copy // P.A To Judge.