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Judgment
Justice P.R. Ramachandra Menon
The petitioner had availed a loan of Rs. 2 lakhs from the 2nd respondent Bank in December, 2007 on the strength of security interest created over the property in question. But, repayment could not be effected on time as scheduled, which made the petitioner a defaulter, under which circumstance, the Bank proceeded with steps under the SARFAESI Act, which in turn is under challenge. The learned Counsel for the petitioner submits that the default was never wilful but because of some compelling circumstances, particularly monetary constraints. It is also stated that there is no dispute with regard to the liability or with regard to the rights and liberties of the respondent Bank in proceedings with the steps under the SARFAESI Act. The only relief now pressed before this Court is to permit the petitioner to clear the entire overdue amount by way of reasonable installments and also to satisfy the regular monthly installments as well.
The learned Standing Counsel for the respondent Bank on instruction submits that a sum of Rs. 1,47,000/- is overdue towards defaulted installments, which statement is sought to be rebutted by the learned Counsel for the petitioner by referring to Ext. P2 notice issued by the Bank on 30.11.2011 wherein the overdue amount to be cleared for regularisation of the loan account is shown as ''Rs.57800/''- as on that date, which even by farthest stretch of imagination cannot reach the figure of Rs. 1,47,000/- as now putforth, within seven or eight months. This Court does not propose to entertain any such controversy. The learned Counsel for the Bank submits that the Bank does not have any objection in regularising the loan account, if the entire overdue amount is cleared. In the said circumstance, the writ petition is disposed of directing the petitioner to satisfy the actual overdue amount by way of ''two'' equal monthly installments, the first of which shall be effected on or before 10.08.2012 and the second one, on or before 10.09.2012. This shall be in addition to the liability to clear the regular monthly installments. Subject to the above, the loan will stand regularised and all coercive proceedings shall be kept in abeyance. It is further made clear that if the petitioner commits any default in remitting the overdue amounts 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.