A debtor may negotiate with a bank for loan renewal and repayment arrangements under the SARFAESI Act.

JUDGMENT

Petitioner has approached this Court challenging the proceedings initiated under the SARFAESI Act which have been initiated by the respondent Bank for recovery of the amounts due from the petitioner. The petitioner availed a cash credit facility and a term loan facility from the respondent bank.

2. The learned counsel appearing for the petitioner submits that the outstanding amount due under the cash credit facility is Rs.2,06,20,797/-. It is submitted that the petitioner may be permitted to approach the bank for renewal of the facility. It is submitted that the overdue amount in the term loan account is Rs.12,23,786/- and the petitioner may be permitted to pay the said amount in some instalments.

3. The learned counsel appearing for the respondent bank submits that the petitioner may approach the competent authority of the respondent bank for renewal of the cash credit facility and if such proposal is filed, the same can be considered by the competent authority of the respondent bank. It is submitted that the bank has no objection in granting some limited instalments to the petitioner to clear the overdue amount in the term loan account. It is submitted that the petitioner has also filed a complaint before the Banking Ombudsman and in order to consider the proposal to be submitted, the said complaint may be withdrawn.

4. Having regard to the circumstances of the case and the submissions made as recorded above, this writ petition is disposed of with the following directions:

1) The petitioner shall file a proposal for renewal of the cash credit facility before the competent authority of the respondent, bank within 10 days from the date of receipt of a certified copy of this judgment.

2) The petitioner shall also produce necessary documents that may be called for by the bank for considering the proposal for renewal of the cash credit facility.

3) The petitioner shall also pay any amount that may be demanded by the competent authority as condition for renewal of the cash credit facility;

4) The petitioner shall pay the overdue amount of Rs.12,23,786/- together with any accrued interest and cost in the term loan facility, in 10 instalments along with the regular EMI on the due date without fail. The first instalment shall be paid on or before 10.03.2025 and the subsequent instalments shall be paid on or before the 10^th working day of every succeeding months;

5) The petitioner shall withdraw any complaint filed by the petitioner before the Banking Ombudsman.

6) It will be open to the petitioner to raise any issue, which is the subject matter of the complaint before the Ombudsman before the competent authority of the respondent bank.

The writ petition is ordered accordingly.

sd/

GOPINATH P.

JUDGE jm/

APPENDIX OF WP(C) 3777/2025 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE LETTER OF ARRANGEMENT DATED 20.05.2023 Exhibit P2 TRUE COPY OF ACCOUNT STATEMENT OF THE PETITIONER’S COMPANY DATED 14.01.2025 FOR THE PERIOD FROM 30.05.2023 TO

14.01.2025 Exhibit P3 . TRUE COPY OF THE RELEVANT PAGES OF THE MASTER CIRCULAR ISSUED BY THE RESERVE BANK OF INDIA, DATED 01.04.2022 Exhibit P4 TRUE COPY OF THE SARFAESI NOTICE, DATED

31.12.2024, IS PRODUCED HEREWITH AND MARKED AS EXHIBIT P4 Exhibit P5 TRUE COPY OF THE LETTER ISSUED BY THE PETITIONER TO THE RESPONDENT BANK , DATED 04.01.2025 Exhibit P6 TRUE COPY OF THE COMPLIANT MADE TO BANKING OMBUDSMAN DATED 27.01.2025 Exhibit P7 THE TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT U/S 13(2) OF SARFAESI Act DATED 24.01.2025