Tomy A.J. vs State Bank of Travncore, The Authorised Officer and Chief Manager and State Bank of Travancore

P.R. Ramachandra Menon, J.—The petitioner is challenging the steps taken by the respondent Bank invoking the provisions under the SARFEASI Act, for realisation of the amount stated as due under the loan transaction, which was availed by the petitioner in connection with the business.

The learned Counsel for the petitioner submits that the default was never wilful but because of some unforeseen circumstances and that the petitioner might be permitted to clear the overdue amount and to have the loan account regularised.

The respondents 1, 2 and 3 filed a statement pointing out the actual facts and figures. Para 4 of the statement stated as follows:

Now the total outstanding due as on 1.6.2010 is Rs. 7,53,863/-. Rs. 2,56,630/- and the said amount is paid forthwith and the over due amount as on 1.6.2010 is if future remittances are made promptly, the Bank is willing to regularise the account subject to the condition that in case of any default the Bank may be given the liberty to proceed with the steps already taken under the SARFAESI Act from the stage at which it is at present and without having to issue a fresh notice.

After hearing both the sides, this Court Court finds it fit and proper to extend one more opportunity to the petitioner to clear the entire overdue amount and to have the loan account regularised. Accordingly, the overdue amount of Rs. 2,56,630/- as on 1.6.2010, is directed to be cleared by the petitioner in the following manner:

The petitioner shall effect payment of the amount of Rs. 1 lakh or before 30th of June 2010 and the balance amount shall be cleared by way of ''three'' equal monthly instalments; the first of which shall be effected on or before the 30th of July, 2010; to be followed by similar instalments to be effected on or before the 30th of the succeeding months. This will be in addition to the regular EMIs as well. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance. It is made clear that, in case of any failure to pay the ''overdue amount'' as above, or if any two consecutive defaults are made in remitting the regular EMIs, the Bank will be free to proceed with further steps for realisation of the entire amount in a lump sum, from the stage where it stands now.

The Writ Petition is disposed of.