Jose Peter vs Bank Of Baroda

C. S. Dias, J

The writ petition is filed to direct the respondents to permit the petitioner to pay off the outstanding amount in equated monthly instalments and close the loan account.

The petitioner’s case is that, he and his wife had availed a housing loan from the first respondent – Bank in the year 2010 by creating an equitable mortgage by deposit of title deeds. Due to the unprecedented flood that happened in the State, the Covid-19 pandemic and also the fact that the petitioner is suffering from cancer, he could not pay the EMIs on time. The respondents have initiated proceedings against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (in short, ‘Act’) and are threatening to take physical possession of the secured asset. The petitioner is willing to pay the outstanding amount in instalments and close the loan account. Hence, the writ petition.

Heard; Sri. R.Divakaran, the learned counsel appearing for the petitioner and Sri.Nagraj Narayan, the learned counsel appearing for the respondents.

Sri.Nagraj Narayan, on instructions, submitted that the outstanding amount as on today is Rs.10,75,000/-. The respondents are willing to permit the petitioner to pay off the outstanding amount in 10 equated monthly instalments. The said submission is recorded.

The learned counsel appearing for the petitioner submitted that the petitioner is ready to accept the above offer.

Having considered the pleadings and materials on record, and in the light of the submission made by the learned counsel appearing for parties, to provide the petitioner one last opportunity, I am inclined to exercise the powers of this Court under Article 226 of the Constitution of India and dispose of the writ petition.

Resultantly, I dispose of the writ petition in the following manner:

(i) The respondents are directed to defer further proceedings pursuant to ExtP3 notice, to enable the petitioner to pay off the outstanding amount in instalments.

(ii) The petitioner is permitted to pay the outstanding amount as stated above with future interest and cost to the first respondent – Bank in 12 equated monthly instalments commencing from 14.09.2023.

(iii) Needless to mention, if the petitioner commits default in respect of any of the conditions ordered above, he will lose the benefit of this judgment and the respondents would be at liberty to proceed with recovery proceedings from the stage it presently stands.

(iv) It is made clear that, no further application for modification/extension of time shall be entertained.