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Judgment
Justice P.R. Ramachandra Menon
The petitioner availed a loan of Rs. 20 Lakhs (Rupees Twenty Lakhs only) from the respondent Bank creating mortgage over 41 cents of property, agreeing to have the monthly repayment effected, as scheduled. But the petitioner could not prove his word by his deed, under which circumstance, there was no other alternative for the Bank but to have the account declared as ''NPA'' and proceeded with further steps under SARFAESI Act, which in turn is under challenge in this writ petition. Learned counsel for the petitioner submits that, the default was never wilful, but because of some unforeseen circumstances and that the petitioner has taken earnest efforts to see that the liability settled at the earliest. The petitioner is also seeking for the benefit of OTS, if any.
The learned counsel appearing for the Bank submits on instructions that, many an opportunity was given to the petitioner to have the loan account regularized and that the ''three'' chances already given in this regard were never made use of. It was in such compelling circumstances, that the Bank proceeded with further steps issuing notice u/s 13(2) of the Act. Learned counsel also submits that the total outstanding amount as on date in respect of the loan facility extended in the year 2006 is Rs. 20,00,464/- (Rupees Twenty lakhs four hundred and sixty four only) as on 17.04.2012, out of which a substantial extent of Rs. 8,09,196/- (Rupees Eight lakhs nine thousand one hundred and ninety six only) constitutes the figure in respect of the ''overdue'' amount towards the defaulted installments. Unless the petitioner clears the entire overdue amount forthwith, the request for regularizing the loan account is not liable to be entertained, submits the learned counsel.
After hearing both the sides and also considering the fact that, the Bank has agreed to give one more chance to the petitioner to have the loan account regularized, if the entire overdue amount is cleared, this Court finds it fit and proper to permit the petitioner to make use of the said opportunity by effecting the entire overdue as Rs. 8,09,196/- (Rupees Eight lakhs nine thousand one hundred and ninety six only) by way of ''two'' equal monthly installments, the first of which shall be effected on or before the 30th of this month and the next installment shall be effected on or before the 30th of August 2012. This will be in addition to the liability to satisfy the regular EMIs without fail. Subject to this, the coercive proceedings shall be kept in abeyance, for the time being. It is made clear that, if any default is committed in satisfying the overdue amount, as above, or if 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 a lump, from the stage where it stands now.
The writ petition is disposed of.