SAHIRA K. & ANR. vs KOTTAKAL CO-OPERATIVE URBAN BANK LIMITED

Petitioners availed a term loan from the Kottakkal Co-operative Urban Bank Limited (the bank). They have not remitted the instalments of the

loan as agreed. Consequently, proceedings have been initiated by the bank under the Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 (the Act) for realisation of the outstanding in the loan account. The petitioners are aggrieved by the said

proceedings.

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

When the matter was taken up, the learned counsel for the petitioners pointed out that non-payment of the instalments of the loan by the

petitioners was due to reasons beyond their control and not wilful and that if a reasonable time is granted, the petitioners are prepared to liquidate

the overdue in the loan account, so that they can repay the remaining outstanding in the loan account in instalments.

The learned counsel for the bank, on instructions, submitted that a sum of Rs.10,93,138/- is overdue in the loan account as on 04.01.2018.

Having regard to the facts and circumstances of the case as also the orders passed by this Court in similar writ petitions, this writ petition is

disposed of as follows :

(i) The petitioners shall pay the overdue in the loan account with the interest due, in ten instalments, of which the first instalment will be

Rs.2,50,000/- and the same shall be paid by the petitioners within one week. The remaining overdue shall be paid by the petitioners in nine equal

monthly instalments thereafter. The petitioners shall also pay, in addition, the regular instalments of the loan on the due dates.

(ii) If the petitioners remit the overdue in the loan account as directed above, the bank shall regularise the loan account so as to enable the

petitioners to liquidate the remaining liability in accordance with the terms of the loan.

(iii) Needless to say that if the petitioners liquidate the overdue as directed above, coercive action against the petitioners shall be deferred. It is,

however, made clear that if the petitioners commit default in remitting any one of the instalments as directed, the proceedings initiated against the

petitioners under the Act can be continued.