George, Swarnama and Stephen vs Authorized Officer/Chief Manager, Federal Bank Ltd., Zonal Office, Statue, Thiruvananthapuram - 695 001 and The Manager, Federal Bank Ltd., Kattakada Branch, Kattakada, Thiruvananthapuram - 695 001

P.R. Ramachandra Menon

The petitioners availed a loan of Rs. 6,00,000/-(Rupees six lakhs) from the respondent Bank creating security interest over the property in question. But since repayment was not effected as scheduled, the account was declared as ''NPA'' and the Bank proceeded with steps under the SARFAESI Act, which forms the subject matter of challenge in this writ petition. When the matter came up for consideration before this Court on 02.07.2012, the attempt to take physical possession of the property was intercepted, on condition that the petitioners deposited a sum of Rs. 1 lakh within ten days, which is stated as complied with. The Learned Counsel for the respondent Bank submits on instruction that, after giving credit to the said amount of Rs. 1 lakh, the balance is nearly Rs. 6.88 lakhs, to have the loan account closed.

The Learned Counsel for the petitioners submits that, though the petitioners have raised a contention that the property concerned is an ''agricultural land'' and hence is not liable to be proceeded against by virtue of the bar u/s 31(i) of the SARFAESI Act, the petitioners do not intend to press any of the contentions and the only relief now pressed before this Court is to permit the petitioners to clear the entire liability by way of reasonable instalments. After hearing both the sides, this Court permits the petitioners to wipe out the entire liability by way of ''ten'' 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. Subject to this, the recovery proceedings shall be kept in abeyance for the time being. It is made clear that, if any default is committed with regard to payment as above, it will be open for the respondent Bank to proceed against the petitioners and the assets for realization of the entire amount in lump from the stage where it stands now.

Writ petition is disposed of.