RANJEESH S. vs STATE BANK OF INDIA

Petitioner availed a vehicle loan from State Bank of India (the bank). It is stated that the account of the said loan has been classified by the bank

as non-performing asset and proceedings have been initiated against the secured asset namely, the vehicle for realization of the outstanding in the

loan account, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act). Later, in

furtherance to the proceedings, the bank has taken possession of the vehicle. The petitioner is aggrieved by the said proceedings.

On 21.12.2017, this Court passed an interim order to the effect that if the petitioner remits a sum of Rs.1,00,000/-, the vehicle which is taken

possession by the bank shall not be sold.

Heard the learned counsel for the petitioner as also the learned counsel for the bank.

When the matter was taken up, the learned counsel for the petitioner pointed out that non-payment of the dues by the petitioner was due to

reasons beyond his control and not wilful, and that if a reasonable time is granted, the petitioner is prepared to liquidate the outstanding in the

account. It was also pointed out by the learned counsel that the petitioner had remitted the sum of Rs.1,00,000/- directed to be remitted in terms

of the interim order.

The learned counsel for the bank, on instructions, submits that the outstanding in the account of the loan as of now is Rs.3,58,041/-. The learned

counsel also submitted that the bank has no objection in this Court granting reasonable instalments to the petitioner for clearing the outstanding.

Having regard to the facts and circumstances of the case especially the facts, viz, that the outstanding liability in the account is only

Rs.3,58,041/-; that the petitioner has remitted the amount directed to be remitted in terms of the interim order; that the vehicle being one used by

the petitioner as a taxi and that the petitioner may not be in a position to pay the amounts due without plying the vehicle, the writ petition is

disposed of as follows :

(i) The petitioner shall pay the outstanding in the loan account with interest due in six equal monthly instalments, of which the first instalment shall be

paid within one month from today.

(ii) If the petitioner remits the outstanding in the loan account as directed above, coercive action against the petitioner shall be deferred and on

payment of the first instalment, the vehicle shall be returned to him. It is, however, made clear that if the petitioner commits default in remitting any

one of the instalments as directed, proceedings initiated against the petitioner under the Act can be continued.