The petitioner availed a cash credit facility of ₹2.60 lakhs and a term loan of ₹1 lakh from the respondent Bank in the year 2007 creating security interest over the property in question. But the repayment could not be effected promptly, when the respondent Bank proceeded against the petitioner by resorting to the remedy under the SARFAESI Act which in turn is under challenge in this writ petition.
2. The learned counsel for the petitioner submits that the default was never wilful, but due to some unforeseen circumstances and that the petitioner does not dispute the liability to clear the due amount or the rights and liberties of the respondents in proceeding against the petitioner. The limited relief now pressed before this Court is to permit the petitioner to clear the entire liability, granting some breathing time in this regard by way of reasonable instalments.
3. The learned counsel appearing for the respondent Bank submits on instructions that, the total outstanding dues to close the loan account in respect of cash credit facility is ₹7,42,661/- and that of the term loan is 28.11.2014.
₹1,06,118/- (thus a total of ₹8,48,779/-) as on W.P.C. No. 32363 of 2014 -2-
4. After hearing both the sides, this Court finds it fit and proper to permit the petitioner to clear the entire liability by way of 'nine' monthly instalments. Initial 'eight' instalments shall be of ₹1 lakh each and the 'ninth' one shall constitute the residual amount so as to top up the balance. The first instalment shall be effected on or before the 20th day of December, 2014; followed by similar instalments to be effected on or before the 20th of succeeding months. Subject to this, the coercive proceedings being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to repayment of the entire liability as above, it will be open for the respondent Bank to proceed against the petitioner for realization of the entire amount in a lump, from the stage where it stands now. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
kp/-