A borrower's intent to settle defaulted loans is crucial for maintaining court petitions under the SARFAESI Act, enabling structured repayment plans.

JUDGMENT

Dated this the 25th day of October, 2022 The petitioner together with his son availed a housing loan from the respondent bank and committed default in payment of amounts due under the loan. It appears from the record that the account was declared as NPA in 2018 and proceedings were initiated by the respondent bank against the petitioner. It also appears that the petitioner has approached this Court earlier in the matter of grant of further time to pay the installments under the One Time Settlement Scheme which was rejected by this Court by Ext.P1 judgment. It also appears that at a time when the property of the petitioner was brought to sale, the petitioner filed yet another writ petition before this Court, which was closed by Ext.P3 judgment on finding that the sale which was subject matter of the writ petition did not fructify.

2. The learned counsel appearing for the petitioner states that possession of the residential house of the petitioner has already been taken by the respondent bank on 26.09.2022 and the petitioner is willing to settle the entire liability in installments.

3. The learned counsel appearing for the respondent bank states that this writ petition is clearly an abuse of process of Court and is not maintainable. It is also submitted that the petitioner had approached this Court earlier by filing W.P.(C.) No.20174/2018, which was dismissed for non prosecution. It is submitted that the filing of that writ petition is not even disclosed in the present writ petition. It is submitted that the total liability is about Rs.2.53 crores as on 31.08.2022. It is submitted that there is absolutely no bonafides and the writ petition is liable to be dismissed.

4. The learned counsel appearing for the petitioner states that the petitioner had not approached this Court earlier seeking the benefit of installments to clear the liability. It is submitted that the petitioner has every intention to settle the liability and is willing to demonstrate bonafides by depositing a substantial amount. It is also submitted that the possession of the secured asset may continue with the bank till the liability is cleared in installments that may be granted by this Court.

5. Heard the learned counsel for the petitioner and the learned counsel appearing for the respondent bank.

6. Having regard to the facts and circumstances of the case and considering the submission of the learned counsel for the petitioner that the petitioner is willing to show bonafides by depositing a substantial amount, the writ petition is disposed of in the following manner:

(i) The petitioner shall pay Rs.25 lakhs toward the loan liability on or before 15.11.2022.

The balance amount together with any accrued interest and costs shall be repaid in ten (10) equal monthly installments commencing from 15.12.2022.

(ii) On failure to pay any one of the installments, it will be open to the respondent bank to continue with the proceedings initiated against the petitioner under the provisions of the SARFASEI Act.

It is also made clear that the possession of the secured asset will continue with the respondent bank till the liability is cleared by the petitioner.

Sd/-

GOPINATH P.

JUDGE SKP/25-10

APPENDIX OF WP(C) 33648/2022 PETITIONER'S EXHIBITS:

EXHIBIT P1 THE TRUE COPY OF THE JUDGMENT IN W.P. (C) NO.

21503/2021 ON THE FILE OF HON'BLE HIGH COURT OF KERALA DT. 5/11/2021 EXHIBIT P2 THE TRUE COPY OF THE NOTICE ISSUED ADVOCATE COMMISSIONER DT. 18/8/2022 EXHIBIT P3 THE TRUE COPY OF THE JUDGMENT IN W.P. (C) NO.

29922/2021 ON THE FILE OF HON'BLE HIGH COURT OF KERALA DT. 22/12/2021 EXHIBIT P4 THE TRUE COPY OF THE E-AUCTION NOTICE DT.

28/9/2022 RESPONDENTS' EXHIBITS:NIL TRUE COPY P.A.TO JUDGE