The petitioners, who are fishermen, formed a registered partnership as borne by Exts.P4 and P5 and availed an agricultural term loan of Rs. 28.50 lakhs from the respondent/Corporation Bank creating security interest over the property in question and purchased a fishing boat, net and other inputs. By virtue of the default on the part of the petitioners, the Bank is proceeding with steps under the SARFAESI Act, which in turn is sought to be intercepted in this writ petition.
2. The learned Counsel for the petitioners submits that the default occurred was not because of any wilful laches or deliberate negligence, but because of some unforeseen circumstances. The learned Counsel submits that the petitioners do not intend to dispute the liability or desire to avail the statutory remedy by approaching the DRT. It is stated that the entire 'overdue' amount as well as regular E.M.Is will be cleared, without fail, if some breathing time is given.
3. The learned Standing Counsel for the respondent Bank, on instruction, submits that a sum of Rs.18,62,335/- is 'overdue' towards defaulted installments out of the total liability W.P.(C)No.28316 OF 2014 2 of Rs. 38,39,439/- as on date.
4. 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 'six' equal monthly installments, the first of which shall be effected on or before 20.11.2014, followed by similar installments to be effected on or before 20th of the succeeding months. Subject to this, the loan account will stand regularised 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 petitioners commit 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.
The writ petition is disposed of as above.
P.R.RAMACHANDRA MENON JUDGE lk