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Judgment
D. K. Singh, J
The petitioner took a housing loan of Rs.20,32,128/- from the respondent Financial Institution in 2020. The loan tenure for repayment, along with interest, is 19.5 years in equal monthly instalments.
The petitioner committed default in repaying the loan amount in terms of the loan agreement. Therefore, the Financial Institution, after classifying the petitioner’s loan account as NPA on 11.06.2024, proceeded against the petitioner under the provisions of the SARFAESI Act and the Rules made thereunder.
The learned Counsel for the respondent Financial Institution, on instructions, submits that the overdue amount is Rs.3,13,261/- and the outstanding amount comes to Rs.21,31,518/-. The physical possession of the secured asset was taken on 21.11.2024. If the petitioner makes a substantial upfront payment along with one regular EMI and the remaining overdue amount in a few instalments as this Court may direct along with regular instalments, the Financial Institution shall regularize the loan account of the petitioner for making further payment in terms of the loan agreement and the Financial Institution shall not proceed against the petitioner under the provisions of the SARFAESI Act and the Rules made thereunder.
Considering the said stand of the learned Counsel for the respondent Financial Institution, the present writ petition is disposed of on the following terms:
(i) The petitioner shall pay an upfront amount of Rs.1 lakh, along with one regular EMI on or before 15.12.2024.
(ii) The remaining overdue amount, along with regular instalments, is to be paid in ten equal monthly instalments.
(iii) The first instalment is to be paid on or before 15.01.2025, and the remaining nine instalments on or before the 15th day of each succeeding month, along with regular instalments.
(iv) If the petitioner pays the entire overdue amount, the Financial Institution shall regularize the petitioner’s loan account for making payments in terms of the loan agreement.
(v) After making payment of the entire overdue amount along with regular instalments, the petitioners shall continue to pay the regular instalments till the entire loan liability is discharged.
(vi) On making a payment of Rs.1 lakhs along with one regular EMI on or before 15.12.2024, the respondent Financial Institution shall hand over the possession of the secured asset to the petitioner. However, if the petitioner fails to make payment of the upfront amount of Rs.1 lakh along with one regular EMI or any instalments as directed above, the Financial Institution shall be free to take back the possession.
The writ petition stands disposed of.