The judgment establishes that borrowers can negotiate repayment options even during active recovery proceedings under the SARFAESI Act.

JUDGMENT

The petitioner availed a cash credit facility of Rs. 85 lakhs from the 1st respondent Bank, creating security interest over the property in question. Because of the adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter and the Bank proceeded with the steps under the SARFAESI Act , after declaring the account as 'NPA'. The Bank sought to approach the concerned Chief Judicial Magistrate's Court by filing a petition under Section 14 of the Act, for getting vacant surrender of the premises, whereby an Advocate Commissioner came to be appointed, which made the petitioner to approach this Court with the following prayers :

i, Issue a writ of mandamus or any other appropriate writ, direction or order directing the respondents to keep in abeyance all proceedings pursuant to Exhibits P1 to P4 against the petitioners and their property having an extent of 10 cents comprised in Survey No. 1204/5-2-1 of Pattom Village, Thiruvananthapuram Taluk and another extent of

2.43 Ares of property in Resurvey No. 47/11-1 of Anavoor Village, Neyyattinkara Taluk, under the securization Act for a period of 5 months so as to enable the petitioners to clear the whole amount due to the respondents in lump sum.

or ii. Issue a writ of mandamus or any other appropriate writ, direction or order directing the respondents to keep in abeyance all proceedings pursuant to Exhibits P1 to P4 against the petitioners and their property having an extent of 10 cents comprised in Survey No. 1204/5-2-1 of Pattom village, Thiruvannathapuram Taluk and another extent of 2.43 Ares of property in Resurvey No. 47/11-1 of Anavoor Village, Neyyattinkara Taluk, under the Securitization Act for a period of 10 months so as to enable the petitioners to clear the loan amount in 10 equal monthly installments commencing from 15th of May, 2014 iii. Grant such other reliefs which this Honourable Court may deem fit and proper in the interest of justice.

2. The learned counsel for the petitioner submits that the default was never wilful and that earnest efforts are being taken to clear the entire overdue amount. It is stated that the petitioner shall continue to effect the payment without fail, simultaneously pointing out that, there is absolutely no dispute whatsoever with regard to the rights and liberties of the Bank.

3. Heard the learned counsel appearing for the respondent Bank as well, who submits that a sum of Rs. 85 lakhs is outstanding towards the loan account. The learned counsel for the petitioner submits that the petitioner is ready and willing to clear the entire loan amount within the shortest possible time 4. After hearing both the sides, the petitioner is permitted to clear the entire outstanding liability by way of 'ten' equal monthly installments; the first of which shall be effected on before the 30th of April 2014; to be followed by similar installments to be effected on or before the 30th of the succeeding months. The recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now. It is made clear that the petitioner will be free to explore the chance for settling the liability once and for all, by arranging private sale with the involvement and consent of of the Bank and the advance amount, if any, collected shall be caused to be remitted directly to the Bank to wipe off the liability. Once the entire liability is cleared, the title deeds shall be returned to the petitioner forthwith.

The Writ Petition is disposed of.