The petitioner had availed a vehicle loan of Rs. 9.50 lakhs from the respondent Bank in the year 2012 creating security interest over the vehicle in question. By virtue of the default on the part of the petitioner, the Bank proceeded with steps under the SARFAESI Act and physical possession of the vehicle was taken over, which 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. Despite all the adverse circumstances, the learned Counsel for the petitioner submits that the petitioner is ready and willing to clear the entire defaulted arrears and that the petitioner is also ready to furnish sufficient immovable property to the satisfaction of the respondent Bank, so as to have the loan account regularised..
3. The learned Counsel for the respondent Bank submits, on the basis of the instructions received that as on date, a sum of Rs.2,54,518/- plus interest are payable towards the W.P.(C)No.25373 of 2014 2 'overdue amount' and the petitioner will have to clear the said amount, if at all, the vehicle loan is to be regularised, for which some installments facility can be granted. It is also submitted that if the petitioner proves his bonafides by satisfying the first installment towards overdue amount and also on furnishing an undertaking to the effect that the vehicle will not be alienated and that the petitioner will not cause any damage or such other steps to reduce the value of the vehicle, the custody of the vehicle can be released to the petitioner
4. Considering the particular facts and circumstances, this Court finds it fit and proper to grant an opportunity to the petitioner to clear the entire 'overdue amount'. Accordingly the petitioner is directed to clear the overdue amount by way of 'four' equal monthly installments, the first of which shall be effected on or before 15.11.2014, followed by similar installments to be effected on or before 15th of the succeeding months. This will be in addition to the liability of the petitioner to remit the regular monthly installments. It is made clear that, if any default is committed by the petitioner in remitting any of the installments towards the 'overdue amount', as above W.P.(C)No.25373 of 2014 3 or if any two consecutive defaults are made in respect of the regular monthly installments, the respondent 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. On clearing the 'overdue amount' as above, possession of the vehicle shall be released to petitioner forthwith.
The Writ Petition is disposed of as above.
P.R.RAMACHANDRA MENON JUDGE lk