The petitioner availed a loan of Rs. 20 lakhs from the respondent Bank, on the strength of security interest created over the property having an extent of 10 cents with a residential building. The financial assistance was sought for and obtained for the purpose of construction of a house boat. Admittedly, there occurred default on the part of the petitioner, when the Bank is proceeded with steps under the SARFAESI Act. It is conceded by the petitioner in the writ petition, that the house boat had to be sold to a stranger so as to generate funds of Rs. 35 lakhs. It stated that, though the petitioner sustained a loss of Rs. 5 lakhs in the said deal, such course was pursued so as to satisfy the liability to private financial institutions, which was mounting up day by day.
2. The learned counsel for the respondent Bank submits that, admittedly there occurred default on the part of the petitioner in satisfying the liability towards the Bank. The Bank approached the concerned Chief Judicial Magistrate, for getting vacant surrender of W.P.(C) No. 25833 of 2014 : 2 :
the premises, whereby an Advocate Commissioner came to be appointed. It was when the Advocate Commissioner sought to effect vacant surrender of the property concerned, that the petitioner sought to approach this Court by way of this writ petition, submits the learned standing counsel. It is also stated that the petitioner had entered into a clandestine deal, causing the house boat to be sold to somebody else, without involvement of the Bank, whereby the rights and liberties of the Bank are adversely affected. It is added that, though the petitioner obtained a sum Rs. 35 lakhs towards the sales consideration, no payment was effected to the Bank till date and as on 30.09.2014, a sum of more than Rs.21 lakhs is due towards the loan account. This being the position the writ petition is not liable to be entertained, submits the learned counsel.
3. After hearing both the sides, this Court finds that the course pursued by the petitioner causing the house boat to be sold without the knowledge of the respondent Bank is liable to be deprecated. However, considering the fact that landed property having an extent of 10 cents with a double storied building was also offered as security, this Court finds it fit and proper to grant one more opportunity to the petitioner to liquidate the liability.
W.P.(C) No. 25833 of 2014 : 3 :
Accordingly, the petitioner is directed to clear the entire outstanding liability towards the Bank as on date by way of 'five' equal monthly installments; the first of which shall be effected on or before the 15.12.2014 followed by similar installments to be effected by on or before the 15th of the succeeding months. Subject to this, the coercive proceedings shall be kept in abeyance for the time being. It is open for the petitioner to arrange for 'private sale' of the property, by identifying a prospective purchaser and taking him to the doors of the Bank, for causing appropriate arrangements to have the sale consideration to be paid/deposited through the Bank. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)