Prasad K.G vs State Bank Of India

Gopinath P., J

The petitioner has approached this Court challenging proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as the SARFAESI Act) for recovery of the amounts due upon a cash credit loan availed by the petitioner.

During the course of hearing, petitioner has confined the relief to an opportunity for repaying the outstanding amount in installments.

It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the outstanding amount is Rs.23,58,289/- (Rupees Twenty three lakh fifty eight thousand two hundred eight nine only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the outstanding amount in limited installments.

I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondents.

Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in fifteen (15) installments.

Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.23,58,289/- (Rupees Twenty three lakh fifty eight thousand two hundred eight nine only) along with bank charges from the petitioner on the following conditions:

(i) The  outstanding  amount  of  Rs.23,58,289/- (Rupees Twenty three lakh fifty eight thousand two hundred eight nine only) together with any accrued interest/costs shall be repaid in fifteen (15) equated monthly installments;

(ii) The first installment shall be paid on or before 15.11.2022 and subsequent installments shall be paid on or before 15th day of every succeeding month;

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

(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance;

The writ petition is disposed of as above.