Surendran TN vs Kerala Bank, Represented By Its Authorized Officer, Harilal

Gopinath P., J

The petitioner has approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the bank for recovery of the amounts due from the petitioner.

During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account.

It was submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount is Rs.9,23,606/-(Rupees nine lakhs twenty three thousand six hundred and six only) as on 18.07.2022. 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 overdue amount in limited instalments and regularise the loan account.

I have heard the learned counsel for the petitioner as well as the learned 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 overdue amount in 15 instalments and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.9,23,606/-(Rupees nine lakhs twenty three thousand six hundred and six only) along with bank charges from the petitioner and regularise the loan account of the petitioner on the following conditions:

i. The overdue amount of Rs.9,23,606/-(Rupees nine lakhs twenty three thousand six hundred and six only) along with any accrued interest and charges shall be repaid in 15 equated monthly instalments.

ii. The first instalment shall be paid on or before 05.08.2022 and the subsequent instalments shall be paid on or before the last working day of every succeeding month.

iii. Petitioner shall continue to pay the regular EMI’s along with the instalments directed above.

iv. In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

v. 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.