The court affirmed the discretion to modify repayment terms under housing loans, especially after the borrower's death, balancing creditor's rights with debtor's realities.

JUDGMENT

Dated this the 21st day of December, 2022 The late husband of the petitioner availed two loans from the respondent financial institution. Both these loans were for housing purposes. On default being committed, proceedings were initiated against the husband of the petitioner for recovery of amounts due. The husband of the petitioner has approached the Debts Recovery Tribunal by filing S.A No.52/2018 challenging the proceedings initiated by the respondent financial institution on the provisions of the SARFAESI Act . The said Securitisation Appllication is stated to be pending. 2. The learned counsel appearing for the petitioner submits that the husband of the petitioner died on 07.05.2021. It is submitted that even after the death of the husband of the petitioner, the petitioner paid nearly Rs.3,25,000/-(three lakhs twenty five thousand only) towards the loan liability despite the fact that the husband of the petitioner was the only earning member of the family. It is submitted that the present overdue amount may be permitted to be repaid in reasonable installments along with regular EMIs.

3. The learned counsel appearing for the respondent financial institution states that the Securitisation Application filed by the late husband of the petitioner has not yet been withdrawn despite the fact that he passed away on 07.05.2021. It is submitted that the present overdue amount after giving credit to the amounts already paid is Rs.4,15,258/-(four lakhs fifteen thousand two hundred and fifty eight only). It is submitted that the respondent financial institution has no objection in granting reasonable installments to the petitioner to clear the liability.

4. I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondent financial institution.

5. Having regard to the facts and circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above and considering the fact that this is a housing loan and also taking into account the fact that the petitioner has undertaken to clear off the overdue amount along with regular EMIs, I am of the view that the petitioner can be granted an opportunity to clear off the overdue amount in twelve (12) equal monthly instalments, first of which shall be paid on or before 15.1.2023 and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

6. Accordingly, there will be a direction to the respondent financial institution to accept repayment of the entire overdue amount of Rs.4,15,258/-(four lakhs fifteen thousand two hundred and fifty eight 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.4,15,258/- together with any accrued interest and charges shall be repaid in twelve (12) equated monthly instalments;

(ii) The first instalment shall be paid on or before 15-

01-2023 and the subsequent instalments shall be paid on the 15th 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 financial institution 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.

7. The petitioner shall take steps to withdraw S.A No.52/2018 forthwith.

The writ petition is disposed of as above.

Sd/-

GOPINATH P.

JUDGE

AP

APPENDIX OF WP(C) 41457/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE LETTER NO.618716967 /NAGA DATED 19.022016 ISSUED BY THE RESPONDENT Exhibit P2 TRUE COPY OF THE LETTER NO.618717322/NAGA DATED 19.02.2016 ISSUED BY THE RESPONDENT Exhibit P3 TRUE COPY OF THE DEATH CERTIFICATE DATED

31.08.2021 ISSUED BY THE PIRAYIRI GRAMA PANCHAYAT Exhibit P4 TRUE COPY OF THE RECEIPT OF PAYMENT DATED

27.10.2021 IN THE NAME