The petitioners availed a housing loan of Rs.2,47,500/- from the respondent Bank , on the strength of security interest created over the property in question. Since repayment could not be effected on time as scheduled, there was no other alternative for the Bank, but to declare the account as 'NPA' and to proceed with steps under the SARFAESI Act, which in turn is under challenge in this writ petition.
2. The learned Counsel for the petitioners submits that the default was never wilful but because of some unforeseen circumstances and that earnest efforts are being taken to clear the overdue amount and to have the loan account regularised. The learned Counsel further submits that there is no dispute with regard to the liability to satisfy the due amount and the only limited relief pressed before this Court is to permit the petitioners to clear the due amount by way of reasonable installments. The W.P. ) No.19432 OF 2012 2 learned Counsel for the petitioners also submits that the petitioners are ready to deposit a sum of Rs.20,000/- within a couple of days.
3. The learned Standing Counsel for the respondent Bank, on instruction, submits that a sum of Rs.43,000/- is due in respect of the defaulted installments. It is also stated that, unless the entire overdue amount is cleared, the Bank is not in a position to regualrise the loan account.
4. After hearing both the sides, this Court finds that an opportunity can be given to the petitioners to clear the overdue amount and to have the loan account regularised; more so in view of the fact that the loan provided to the petitioners is in the housing hector. Accordingly, the petitioners are directed to deposit a sum of Rs.20,000/- within 'two weeks' and the balance overdue amount shall be cleared by way of '5' equal monthly installments, the first of which shall be effected on or before 30.09.2012, to be followed by similar installments to be effected on or before the 30th of the succeeding months. It is also made clear that the petitioner shall continue to effect the regular W.P. ) No.19432 OF 2012 3 E.M.Is as originally stipulated, besides clearing the arrears, as above. The loan will stand regularised accordingly and all coercive proceedings shall be kept in abeyance for the time being. It is further made clear that, if the petitioners commit any default in remitting the overdue amounts/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, from the stage where it stands now.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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