The petitioners had availed a loan of Rs.5 lakhs from the respondent/Indus Ind Bank, hypothecating the vehicle owned by the petitioners. By virtue of the default on the part of the petitioners, the Bank is proceeding with the steps under the SARFAESI Act, by filing a petition under Section 14(1) of the SARFAESI Act, for taking physical possession of the vehicle. The petitioners are now before this Court challenging the said proceedings.
2. Heard the learned Government Pleader as well.
3. The learned Counsel for the petitioners submits that the default was because of some unforeseen circumstances and that they do not intend to dispute the liability in any manner. It is however assured that the entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing time is given.
4. The learned Counsel for the Bank submits that possession of the vehicle bearing No. KL.25/C.2189 was taken over on an earlier instance, because of the default on the part of the petitioners, when the party approached this Court by filing W.P.(C)No.15360 of 2013, which was disposed of in the following terms:
“2. The overdue amount is about Rs.2,66,301/-(Rupees two lakhs sixty six thousand three hundred and one only) and the period of the vehicle loan expires only in the year 2015.
3. I direct the respondent Bank to release the vehicle repossessed by it on the petitioner paying the entire overdue amount.
4. The balance amount shall be paid by the petitioner as agreed to between the parties at the time of availing the loan. “ The learned Counsel submits that, it was only because of the subsequent default, that the respondent Bank was constrained to take over physical possession of the vehicle and hence the course pursued by the Bank is perfectly within the four walls of law and is not assailable under any circumstance.
5. After taking note of the particular facts and circumstances and also the nature of the loan, this Court finds it fit and proper to permit the petitioners to clear the liability towards the 'overdue' amount by way of 'four' equal monthly installments, the first of which shall be effected on or before 15.11.2014 to be followed by similar installments to be effected on or before 15th of the succeeding months. Subject to this, the loan account will stand regularised accordingly and all coercive proceedings shall be kept in abeyance. This will be in addition to the liability to clear the regular monthly installments as well. It is further made clear that, if the petitioner commits any default in remitting the overdue amount/arrears as above or in the event of committing two consecutive defaults in respect of the regular E.M.Is payable, the respondent Bank will be at liberty to proceed with further steps for realisation of the entire outstanding liability in a lump, pursuing such steps, from the stage where it stands now. Custody of the vehicle shall be released to the petitioner only subject to satisfaction of the entire overdue amount as aforesaid.
The writ petition is disposed of as above.
P.R.RAMACHANDRA MENON JUDGE lk