JUDGMENT

Dated this the 13th day of August, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the State Bank of India to the petitioner, invoking the provisions of the Revenue Recovery Act.

2. The Bank paid ₹7,60,000/- to the petitioner as MSME Loan in the year 2020. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the instalments promptly later. The repayment of loan fell into arrears later. It happened due to reasons beyond the control of the petitioner.

3. Though the petitioner requested the Bank to permit the petitioner to repay the outstanding amounts in easy monthly instalments, the Bank authorities were not yielding.

The authorities, instead, started coercive proceedings, invoking the provisions of the Revenue Recovery Act and issued Exts.P3 and P4 notices.

4. The petitioner states that she is still in a position to clear the outstanding amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, she will be put to untold hardship and loss.

5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2020. The petitioner committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go, than to proceed against the petitioner invoking the provisions of the Revenue Recovery Act. The impugned Exts.P3 and P4 notices were issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

7. The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance outstanding amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 05.08.2024 is ₹11,40,687/-.

8. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the Bank. I have also heard the learned Government Pleader representing respondents 3 to 5.

9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment of the account occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.

10. In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.

11. The writ petition is therefore disposed of with the following directions:

(i) The petitioner shall remit the outstanding amount of ₹11,40,687/- in 15 consecutive and equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments shall be paid on or before 13.09.2024.

(ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.

(iii) If the petitioner pays the amount as directed above, any coercive proceedings against the petitioner will stand deferred.

Sd/-

N. NAGARESH JUDGE

SR

APPENDIX OF WP(C) 27773/2024 PETITIONER'S EXHIBITS:

Exhibit P1 TRUE COPY OF THE STATEMENT OF ACCOUNT ISSUED BY THE 1ST RESPONDENT WITH RESPECT TO THE LOAN ACCOUNT OF PARAGON PANTHAL DECORATION WITH