Shivarama B.T vs Vellarikundu Primary Co-Operative Agricultural

The petitioner, who availed financial assistance from the 1st respondent Bank under loan Account Nos.2046/CON, 732/CON, 777/CON and 834/CHAB, for a total sum of Rs.9 lakhs, on the strength of his property having an extent of 1.48 acres of land comprised in Sy.No.351/C7 PT of Panathadi village in Vellarikundu Taluk and 0.57 acres of land comprised in Sy.No.351/C9 PT of Panathadi village in Vellarikundu Taluk, has approached this Court under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P1 auction sale notice dated 8.12.2017 issued by the 2nd respondent Special Sale Officer and seeking a writ of mandamus commanding the respondents to refrain from all proceedings initiated pursuant to Ext.P1 sale notice and allow him to pay the outstanding amount in 20 equal monthly instalments and regularise the loan accounts.

On 29.1.2018, when this writ petition came up for admission, this Court issued urgent notice by speed post to respondents 1 and 2, returnable within three weeks. This Court granted interim stay of all proceedings pursuant to Ext.P1 for a period of one month on condition that the petitioner deposits a sum of Rs.2 lakhs, within a period of one week from that date, and a further sum of Rs.2 lakhs, within a period of two weeks thereafter.

After remitting the first instalment of Rs.2 lakhs in terms of the order of this Court dated 29.1.2018, the petitioner moved I.A.No.4153/2018, seeking extension of time for payment of the second instalment. In the said interlocutory application, this Court passed an order dated 2.3.2018, whereby the time limit for depositing the second instalment of Rs.2 lakhs was extended for a further period of two weeks from that date, i.e., till 16.3.2018.

Heard the learned counsel for the petitioner and also the learned counsel for the 1st respondent Bank.

Learned counsel for the petitioner would submit that the petitioner shall deposit the second instalment of Rs.2 lakhs within the extended time granted by this Court by order dated 2.3.2018, i.e., on or before 16.3.2018 and for clearing balance overdue amount, he requires a reasonable time. Learned counsel would also submit that the petitioner may be permitted to clear the overdues in monthly instalments along with regular monthly instalments.

Learned counsel for the 1st respondent would submit that the total amount outstanding in respect of the loan transaction in question comes to Rs.10,34,896/- as on 12.2.2018 and the overdues come to Rs.6,10,000/-. If the petitioner is prepared to pay off the overdues together with future interest in monthly instalments, along with regular monthly instalments, the 1st respondent Bank has no objection in this Court granting him a reasonable time for such repayment.

Having considered the rival submissions, this writ petition is disposed of with the following directions :-

(i) The petitioner shall deposit the second instalment of Rs.2 lakhs in terms of the order of this Court dated 2.3.2018 on or before 16.3.2018. He shall pay off the balance overdue amount amounting to Rs.6,10,000/- together with future interest in eight equal monthly instalments commencing from 16.4.2018 and the subsequent instalments payable on or before the 16th day of the succeeding months. Along with the said instalments, the petitioner shall also pay the regular monthly instalments.

(ii) If the petitioner is remitting the aforesaid instalments in time, without any default, all recovery proceedings pursuant to Ext.P1 shall be kept in abeyance, so as to enable the petitioner to pay off the entire dues, as above.

(iii) In case of any default committed by the petitioner in remitting any one of the aforesaid instalments, it will be open to the respondents to proceed further with the coercive steps, in accordance with law.