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Judgment
Justice P.R. Ramachandra Menon
The issue is in respect of the default committed by the petitioners under a ''housing loan'' availed from the respondent Bank. As a matter of fact, a sum of Rs. 10 Lakhs (Rupees Ten Lakhs only) was availed on 18.07.2012, creating security interest over the property. The repayment could not be effected on time, which made the respondent Bank to declare the account as NPA and to proceed with steps under the SARFAESI Act, which in turn is under challenge. The learned counsel for the petitioners submits that the default was never willful, but because of some unforeseen circumstance and that the petitioners do not intend to dispute the liability to satisfy the due amount, nor is there any dispute with regard to the rights and liberties of the Bank in proceeding against the property under the relevant provisions of the SARFAESI Act. The only relief now pressed before this Court is to give some breathing time to clear the overdue amount, assuring that the future EMIs will be paid without fail.
Heard the learned counsel for the respondent Bank as well.
After hearing both the sides and also considering the particular nature of the loan and the limited extent of relief sought for, this Court finds that the petitioners can be given an opportunity to clear the overdue amount, to have the loan account regularized. Accordingly, the petitioners are directed to satisfy the entire ''overdue'' amount in respect of the defaulted installments by way of ''four'' equal monthly installments, the first of which shall be effected on or before the 10th September 2012 to be followed similar installments to be effected on or before the 10th of the succeeding months. This will be in addition to the liability of the petitioners to clear the regular EMIs as well. Subject to this, loan account will stand regularized and the coercive proceedings taken shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to the satisfaction of the ''overdue'' as above, or if any 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 lump, by pursuing such steps from the stage where it stands now.
The writ petition is disposed of.