The petitioner availed a housing loan of Rupees Ten lakhs from the respondent Bank in the year 2008, on the strength of security interest created over the property concerned. Because of various adverse circumstances, the repayment could not be effected on time and the petitioner turned to be a defaulter, whereupon, the account was declared as 'N.P.A.' and the Bank proceeded with steps under the SARFAESI Act, which is subjected to challenge in this writ petition.
2. The learned counsel for the respondent Bank submits on instructions that, the total outstanding arrears is nearly Rs.10,47,986/- (Rupees Ten lakhs forty seven thousand nine hundred and eighty six only), out of which, about Rs.1,84,492/- (Rupees One lakh eighty four thousand four hundred and ninety two only) is 'overdue' in respect of the defaulted instalments.
W.P.(C) No.24382 of 2014 2
3. The learned counsel for the petitioner submits that the default was never wilful, but because of some unforeseen circumstances. It is stated that, the petitioner is taking earnest efforts to clear the liability and that the prayer is only to grant some breathing time to clear the 'overdue' amount and to make the regular monthly installments. The learned counsel further submits that the petitioner does not intend to dispute the liability nor does he intend to avail the statutory remedy by approaching the D.R.T.
4. After hearing both the sides, the petitioner is directed to satisfy the 'overdue' amount by way of 'four' equal monthly instalments, the first of it 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 the succeeding months. Subject to this, the recovery proceedings shall be kept in abeyance for the time being and the loan account shall stand regularised. This will be in addition to the liability of the petitioner to clear the W.P.(C) No.24382 of 2014 3 regular EMIs.
5. It is made clear that, if any default is committed with regard to satisfaction of any of the overdue installments, or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondent Bank to proceed with further steps for realization of the entire amount in lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp