The petitioner had availed a cash credit facility of ₹7 lakhs from the respondent Bank in the year 2004 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.
3. The learned counsel appearing for the respondent Bank submits on instructions that, the total outstanding amount to close the loan account as on 14.10.2014 is nearly ₹7,84,742/-.
4. After hearing both the sides, particularly, in view of the limited relief sought for, this Court finds it fit and proper to permit the W.P.C. No. 26824 of 2014 -2-
petitioner to clear the entire liability by way of 'eight' monthly instalments. Seven instalments shall be of ₹1 lakh each and the last instalment shall constitute the requisite amount so as to discharge the entire liability. The first instalment shall be effected on or before the 30th day of October, 2014; followed by similar instalments to be effected on or before the 30th 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 liability as above, it will be open for the respondent Bank to proceed against the petitioner for realization of the entire amount in 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.
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