Aboobacker P.K.Vs Manager The Indian Overseas Bank

Shoba Annamma Eapen, J

Petitioners have availed a housing loan from the respondent bank to the tune of Rs.48,50,000/-. On default being committed, proceedings have been initiated against the petitioners under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act). The petitioners have filed this writ petition seeking easy installments to pay off the amounts due.

During the course of hearing, petitioners have confined the relief to an opportunity for repaying the overdue amount in installments and to obtain regularization of the loan account.

The learned Standing Counsel appearing for the respondent bank submits that the overdue amount in the housing loan in question is Rs.4,50,000/-. It is submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the overdue amount in limited installments and regularize the loan account. It is submitted that the petitioners have also availed an overdraft facility. On a perusal of the writ petition, it is seen that the petitioners have not sought any installment facility as regards the overdraft facility availed.

Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to repay the overdue amount in 10 installments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularized.

Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.4,50,000/- along with any accrued interest, costs and charges from the petitioners and regularize the loan account of the petitioners in the following manner:

(i) The petitioners shall pay the overdue amount of Rs.4,50,000/- in the housing loan account together with any accrued interest, costs and charges in 10 equated monthly installments;

(ii) The first installment shall be paid on or before 16-05-2025. The subsequent installments shall be paid on or before the 16th day of the succeeding months;

(iii) Petitioners shall continue to pay the regular EMI’s/installments along with the installments as directed above;

(iv) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with the law;

(v) In order to enable the petitioners to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.