Abdul Majeed vs Perinthalmanna Urban Co Operative Bank

C.S.Dias, J

The writ petition is filed to direct the respondent to permit the petitioner to pay the overdue amount in installments and regularise the loan account.

The petitioner had availed a loan from the respondent – Bank - by creating an equitable mortgage. Due to unforeseen circumstances, the petitioner could not pay the installments on time. The respondent has initiated proceedings against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, ‘Act’). The petitioner is ready to pay the overdue amount in equated monthly installments. Hence, the writ petition.

Heard; Sri.K.Rakesh, the learned Counsel appearing for the petitioner and Smt.Jayasree K.P., the learned Counsel appearing for the respondent.

Smt.Jayasree K.P., on instructions, submitted that, as on today, the overdue amount is Rs.11,30,000/-. The respondent is willing to permit the petitioner to pay off the overdue amount in eight equated monthly installments. The said submission is recorded.

The learned Counsel appearing for the petitioner submitted that the petitioner may be granted atleast twelve installments to pay the above overdue amount.

Having considered the pleadings and materials on record, the submissions made by the learned counsel appearing for the parties, the consensus arrived at between the parties and to provide the petitioner one last opportunity to clear off the liability, I am inclined to exercise the powers of this Court under Article 226 of the Constitution of India and entertain the writ petition.

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

(i) The respondent is directed to defer further coercive proceedings pursuant to Ext.P1 to enable the petitioner to pay the liability in equated monthly installments as stated below.

(ii) The petitioner is permitted to pay the overdue amount as stated above with future interest and cost to the respondent – Bank – in twelve equated monthly installments commencing from 01.08.2023 along with regular EMIs.

(iii) Needless to mention, if the petitioner commits default in any of the conditions ordered above, the petitioner would lose the benefit of this judgment and the respondent would be at liberty to proceed with the 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.