The court permitted the petitioner to repay outstanding loan liabilities in instalments due to business disruption caused by floods, emphasizing the need for reasonable repayment terms.

JUDGMENT

Dated this the 5 th day of December, 2022 The petitioner has availed several credit facilities from the respondent bank, including a housing loan and a suraksha loan. The loans other than the housing loan and suraksha loan were availed for the purpose of the business of the petitioner. The petitioner has approached this Court being aggrieved by the fact that the proceedings initiated under the provisions of the SARFAESI Act to recover the amounts due from the petitioner in respect of the loans availed by him.

2. The learned counsel appearing for the petitioner states that though the petitioner approached the Debts Recovery Tribunal and filed a Securitization Application under Section 17 of the SARFAESI Act , the Tribunal has refused the interim order prompting the petitioner to approach this Court by filing the above Original Petition.

3. The learned counsel appearing for the respondent bank submits that the proceedings have been initiated only in respect of the housing loan and the suraksha loan, which were heavily in arrears and were Non-Performing Assets. It is submitted that, as on date, the total liability in respect of the aforesaid loans is Rs.79,32,543/- and those accounts cannot be regularized. It the submitted that the loans have been recalled. It is submitted that the respondent bank has no objection in permitting the petitioner to clear the entire liability in limited instalments.

4. The learned counsel appearing for the petitioner states that the entire business of the petitioner was affected by the flood in the year 2018 and this was the only reason why there was a default in repayment of the amounts due from the respondent bank. It is submitted that though the original petition is against the refusal of the interim relief by the Tribunal in S.A. No.349/2022, the petitioner may be permitted to clear the entire liability in respect of the housing loan and the suraksha loan in instalments. It is submitted that the petitioner will also unconditionally withdraw S.A. No. 349/2022, pending before the Debts Recovery Tribunal-II, Ernakulam, if the petitioner is permitted to clear the liability in instalments.

5. Having heard the learned counsel appearing for the petitioner and the learned counsel for the respondent bank and having regard to the facts and circumstances of the case, including the fact that the loans in question are a housing loan and a suraksha loan, I am of the opinion that the petitioner can be given some reasonable instalments to clear the entire outstanding liability of Rs.79,32,543/-. Therefore, this Original Petition will stand disposed of in the following manner:-

(i) The petitioner shall pay a sum of Rs.1,50,000/- on or before 31.12.2022. The petitioner shall continue to pay a sum of Rs.1,50,000/- every month thereafter, i.e. on or before 31.01.2023, 28.02.2023, and 31.03.2023.

(ii) The balance outstanding amount along with any accrued interests and charges shall be repaid in twelve (12) equated monthly instalments, starting from 30.04.2023. (iii) If the petitioner commits any default it will be open to the respondent bank to continue with the proceedings initiated against the petitioner.

6. Notwithstanding the directions contained in this judgment, it will always be open to the petitioner to approach the bank for One Time Settlement and if One Time Settlement is granted to the petitioner, it will be governed by the terms of One Time Settlement and not by the directions contained in this judgment. This order will not have any bearing on any other loans availed by the petitioner.

The Original Petition is disclosed of as above.