The petitioner had availed a Cash Credit facility of Rs. 7.5 lakhs from the respondent/State Bank of India in the year 2010. By virtue of the default on the part of the petitioner, the Bank proceeded with the steps under the SARFAESI Act, declaring the account as NPA on 28.12.2012, which is sought to be intercepted in this writ petition.
2. The learned Counsel for the petitioner submits that the petitioner has effected payments as borne by Ext.P1 series receipts. But the fact remains that the liability was not liquidated; more so when the Cash Credit Facility was only for a period of one year and the tenure is over. The learned Counsel 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 liability, provided some breathing time is given. It is also submitted that the petitioner W.P.(C)No.26645 OF 2014 2 does not intend to dispute the liability by availing the statutory remedy nor is there any challenge with regard to the course and proceedings pursued by the Bank .The prayer is only to enable the petitioner to satisfy the entire liability by way of reasonable installments.
3. Heard the learned Standing Counsel for the respondent Bank, who submits that the total outstanding liability under the loan transaction as on today is Rs.6,12,112/-.
4. After hearing both the sides and also considering the limited nature of the relief sought for, this Court finds that an opportunity can be granted to the petitioner to clear the entire liability in a phased manner. Accordingly, the petitioner is permitted to liquidate the entire liability by way of '6' equal monthly installments, the first of which shall be effected on or before 30.10.2014, followed by similar installments to be effected on or before 30th of the succeeding months. Subject to the above, the recovery proceedings shall be kept in abeyance. It is made clear that if any default is committed by the petitioner in effecting the installments as above, the respondent Bank will W.P.(C)No.26645 OF 2014 3 be at liberty to proceed with further steps for realisation of the entire amount in a lump, from the stage where it stands now.
The writ petition is disposed of.
P.R.RAMACHANDRA MENON JUDGE lk