A. Ramankutty Nair vs Canara Bank, Deputy Tahsildar (Revenue Recovery) and Village Officer

Justice P.R. Ramachandra Menon

The petitioner availed an agricultural loan of Rs. 50,000/- from the first respondent, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with further steps invoking the machinery under the Revenue Recovery Act for realization of due amount. The petitioner is before this Court challenging the said proceedings. The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire outstanding amount. It is stated that there is absolutely no dispute whatsoever with regard to the liability to pay the amount or as to the rights and liberties of the Bank to proceed with steps under the Revenue Recovery Act. The learned counsel for the petitioner submits that the only relief now pressed before this Court is to permit the petitioner to clear the entire liability by way of installments.

Heard the learned standing counsel for the respondent Bank as well. Considering the facts and circumstances, including the fact that the loan availed by the petitioner is in the agricultural sector, this Court finds it fit and proper to permit the petitioner to clear the entire liability by way of some installments. Accordingly, the petitioner is directed to clear the entire outstanding liability by way of ''six'' equal monthly installments; the first of which shall be effected on before the 15th of September, 2012; to be followed by similar installments to be effected on or before the 15th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. 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.