Ajith Paliat vs Authorized Officer, State Bank Of India

C.S.Dias, J

The writ petition is filed to direct the respondents to permit the petitioner to pay the closure amount in equated monthly instalments and close the loan account.

The petitioner had availed financial assistance from the first respondent – Bank - by creating an equitable mortgage. Due to unforeseen circumstances, the petitioner could not pay the instalments on time. The respondents have 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 closure amount in equated monthly instalments. Hence, the writ petition.

Heard; Smt.Namitha Jyothish, the learned counsel appearing for the petitioner and Sri. Jayesh Mohan Kumar, the learned counsel appearing for the respondents.

Sri. Jayesh Mohan Kumar, on instructions, submitted that as on today, the closure amount is Rs.11,88,168/-. The respondents are willing to permit the petitioner to pay off the closure amount in five equated monthly instalments. The said submission is recorded.

The learned counsel appearing for the petitioner submitted that the petitioner is ready to accept the above offer.

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 respondents are directed to defer further coercive proceedings pursuant to Ext P1, to enable the petitioner to pay the closure amount in equated monthly instalments as stated below.

(ii) The petitioner is permitted to pay the closure amount as stated above with future interest and cost to the second respondent – Bank – in five equated monthly instalments commencing from 26.07.2023.

(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 respondents would be at liberty to proceed with 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.