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Judgment
The first petitioner availed a term loan from the Oriental Bank of Commerce (the bank). Petitioners 2 and 3 are the co-obligants to the said loan
transaction. They have not remitted the instalments of the loan as agreed. Consequently, proceedings have been initiated by the bank under the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act) for realisation of the outstanding in
the loan account. The petitioners are aggrieved by the said proceedings.
Heard the learned counsel for the petitioners as also the learned counsel for the bank.
When the matter was taken up, the learned counsel for the petitioners pointed out that non-payment of the instalments of the loan by the
petitioners was due to reasons beyond their control and not wilful and that if a reasonable time is granted, the petitioners are prepared to liquidate
the overdue in the loan account, so that they can repay the outstanding in the loan account in instalments.
The learned counsel for the bank, on instructions, submitted that a sum of Rs.42,310/- is overdue in the loan account. The learned counsel also
submitted that the bank has no objection in this Court granting reasonable instalments to the petitioners for clearing the overdue.
Having regard to the facts and circumstances of the case as also the orders passed by this Court in similar writ petitions, this writ petition is
disposed of as follows :
(i) The petitioners shall pay the overdue in the loan account with the interest due, in ten equal monthly instalments, of which the first instalment shall
be paid within one month from today. The petitioners shall also pay, in addition, the regular instalments of the loan on the due dates.
(ii) If the petitioners remit the overdue in the loan account as directed above, the bank shall regularise the loan account so as to enable the
petitioners to liquidate the remaining liability in accordance with the terms of the loan.
(iii) Needless to say that if the petitioners liquidate the overdue as directed above, coercive action against the petitioners shall be deferred. It is,
however, made clear that if the petitioners commit default in remitting any one of the instalments as directed, the proceedings initiated against the
petitioners under the Act can be continued.