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Judgment
Petitioner availed a term loan from the Kerala State Co-operative Bank Limited (the bank). She has 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 petitioner is aggrieved by the said
proceedings.
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 instalments of the loan by the
petitioner was due to reasons beyond her control and not wilful and that if a reasonable time is granted, the petitioner is prepared to liquidate the
overdue in the loan account, so that she can repay the outstanding in the loan account in instalments.
The learned counsel for the bank, on instructions, submitted that a sum of Rs.2,52,219/- is overdue in the loan account. The learned counsel
also submitted that the bank has no objection in this Court granting reasonable instalments to the petitioner for clearing the overdue.
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 petitioner shall pay the overdue in the loan account with the interest due, in ten equal monthly instalments, of which the first instalment shall
be paid within one month from today. The petitioner shall also pay, in addition, the regular instalments of the loan on the due dates.
(ii) If the petitioner remits the overdue in the loan account as directed above, the bank shall regularise WPC No.3524/18 3 the loan account so as
to enable the petitioner to liquidate the remaining liability in accordance with the terms of the loan.
(iii) Needless to say that if the petitioner liquidates the overdue as directed above, coercive action against the petitioner shall be deferred. It is,
however, made clear that if the petitioner commits default in remitting any one of the instalments as directed, the proceedings initiated against the
petitioner under the Act can be continued.