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Judgment
P.R. Ramachandra Menon
The petitioner is stated as aggrieved of the coercive steps taken by the respondent Bank by resorting to the remedy under the SARFAESI Act in the course of realization of the amount due under two loan transactions. The petitioner had taken two loans, a ''housing loan'' and ''personal loan'', to an extent of Rs. 10 lakhs and Rs. 2 lakhs respectively, on the strength of the security created over the property in question. It is stated that, because of some adverse circumstances, the amount could not be repaid on time as scheduled and the Bank proceeded with steps under the SARFAESI Act, which in turn is under challenge in this writ petition.
The Learned Counsel for the respondent Bank submits that the petitioner was not at all eager to satisfy the timely instalments, which has resulted in arrears of Rs. 4,46,944/- (Rupees four lakhs forty six thousand nine hundred and forty four) as ''overdue'' in respect of the defaulted instalments under the two loans and unless the ''overdue'' amount is cleared, the claim for regularization is not liable to be entertained, submits the Learned Counsel.
this Court finds that the petitioner has earlier approached this Court by filing W.P.(C). No. 10621/2011, which culminated in Ext.P1 judgment dated 04.04.2011. This was at the stage of issuance of notice u/s 13(2). But at that time, interference was declined observing that it was ''premature'', as the petitioner was very much at liberty to file statement of objections and to have it considered as specified u/s 13(3A) of the SARFAESI Act.
The Learned Counsel for the petitioner submits that the petitioner has submitted Ext.P2 objection before the Bank after passing Ext.P1 judgment i.e., in response to Section 13(2) notice, pointing out that the petitioner sustained a serious accident and was under treatment for nearly ten months in the District Hospital, Thrissur. It is also pointed out that the second daughter of the petitioner, after delivery, had sustained some serious burns and had undergone treatment in the Jubilee Mission Hospital, Thrissur for nearly three months. It was further stated that, the son of the petitioner who was having employment abroad lost the same and was sitting idle for nearly eight months. All these circumstances came across the way, in clearing the liability on time.
The Learned Counsel for the respondent Bank submits that Ext.P2 was not received in the Bank. The Learned Counsel for the petitioner submits that there is absolutely no dispute with regard to the liability to pay the due amount or is there any complaint with regard to the rights and liberties of the Bank in proceeding with the steps under the SARFAESI Act. The only relief now pressed before this Court is to permit the petitioner to clear the ''overdue'' amount, granting some breathing time and to satisfy the regular EMIs without fail. It is also stated by the Learned Counsel for the petitioner that the petitioner, to prove his bonafides, has already satisfied a sum of Rs. 50,000/-(Rupees fifty thousand) on 19.5.2012. After hearing both the sides, this Court finds it fit and proper to permit the petitioner to clear the ''overdue'' amount by way of ''four'' equal monthly instalments, the first of which shall be effected on or before the 10th of August, 2012, to be followed by similar instalments to be effected on or before the 10th of the succeeding months. This shall be in addition to the liability of the petitioner to clear the regular EMIs as well. Subject to this, the loan account will stand regularized. The coercive proceedings pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to the ''overdue'' amount or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondent Bank to proceed against the petitioner and his assets for realization of the entire amount in lump, from the stage where it stands now.
Writ petition is disposed of.