A borrower defaulting on a loan may seek repayment in installments, conditional on demonstrating bonafides in repayment behavior.

JUDGMENT

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

2. 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.

3. It was submitted on behalf of the respondent financial institution that the petitioner committed default in repayment of the term loan and the overdue amount as on today is Rs.28,14,364/- (Rupees twenty eight lakhs fourteen thousand three hundred and sixty four only). The learned Standing Counsel for the respondent financial institution states that while they may not have objection in granting some instalments, the petitioner must be put on terms to prove bonafides as the petitioner is a recalcitrant defaulter. It is also submitted that the mortgaged assets are presently under the possession of tenants and one residential building was taken physical possession under Section 14 of the SARFAESI Act . It is submitted that the tenant, who was occupying the other residential building was a lady and who undertook to vacate the premises within a period of two weeks. It is submitted that without vacating the premises, the present original petition has been filed.

4. I have heard the learned counsel for the petitioner as well as the learned counsel for the respondents.

5. 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 total overdue amount on condition that Rs.3,00,000/- (Rupees three lakhs only) shall be paid on or before 27.09.2022 and the balance amount shall be paid in 10 equal monthly instalments, the first of which shall be paid on or before 27.10.2022 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.28,14,364/-(Rupees twenty eight lakhs fourteen thousand three hundred and sixty four only) along with accrued, interest, costs and charges from the petitioner and regularise the loan account of the petitioner on the following conditions:

i. The petitioner shall pay a sum of Rs.3,00,000/- (Rupees three lakhs only) on or before 27.09.2022; balance overdue amount along with any accrued, interest, costs and charges shall be repaid in 10 equal monthly instalments.

ii. The first instalment shall be paid on or before 27.10.2022 and the subsequent instalments shall be paid on the last working every succeeding months.

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.

vi.On the petitioner paying four of the monthly instalments, following the initial deposit of Rs.3,00,000/-, the physical possession of the asset, which has to be taken over shall be returned to the petitioner.

The original petition is disposed of as above.

Sd/-

GOPINATH P.

JUDGE

DK

APPENDIX OF OP (DRT) 354/2022 PETITIONER EXHIBITS Exhibit P-1 NOTICE ISSUED UNDER SECTION 13(4) SARFASEI ACT Exhibit P-2 CERTIFICATE ISSUED BY AGRICULTURAL OFFICER, DATED 12/04/2021 Exhibit P-3 ORDER OF DRT ERNAKULAM, DATED 13/07/2022. Exhibit P-4 NEWS PAPER CUTTING OF THE CHANDRIKA DAILY KOCHI EDITION PAGE NO; 3, DATED

18/08/2022.