The court underscored the balance between the rights of banks under the SARFAESI Act and the leeway for borrowers to rectify defaults through structured repayment.

JUDGMENT

The 1st petitioner availed a financial assistance under overdraft scheme from the respondent Bank to the tune of Rupees Twenty lakhs, which was subsequently increased to Rupees Forty lakhs, for which the 2nd petitioner stood as guarantor, creating security interest over the property in question. Since the repayment could not be effected as scheduled, the Bank proceeded with steps under the SARFAESI Act , which made the petitioners to approach this Court by filing this writ petition.

2. The learned Standing Counsel appearing for the respondent Bank submits that, the petitioners challenged the proceedings taken by the respondent Bank under the SARFAESI Act by approaching the DRT, Ernakulam by filing S.A. No.343 of 2014. It is stated that, because of the lapse on the part of the petitioners, the sale stands notified to be held tomorrow as borne by Ext.P4. Giving a chance to the petitioners to save the property, the Tribunal directed the petitioners to satisfy a sum of Rupees Ten lakhs before 27.11.2014 and the balance by way of three instalments. It is stated that, the said S.A. has been disposed of accordingly, but the petitioners have not chosen to comply with the directions. The learned Standing Counsel also submits that, the total outstanding liability as on date is nearly Rs.47,15,712/- (Rupees Forty seven lakhs fifteen thousand seven hundred and twelve only).

3. The learned counsel for the petitioners submits that the default was never wilful, but because of some unforeseen circumstances. The petitioners have taken necessary steps to effect a deposit of Rupees Six lakhs today and that the same will be remitted accordingly. It is also stated that, the petitioners do not intend to raise any dispute whatsoever, with regard to the quantum or the rights and liberties of the respondent Bank in proceeding with steps under SARFAESI Act . The prayer is only to permit the petitioners to wipe off the entire balance amount by way of reasonable instalments.

4. After hearing both the sides, the petitioners are directed to deposit a sum of Rupees Six lakhs, as assured and undertaken, today itself. Considering the extent of total liability to be cleared and in view of the finding that, the petitioners do not seek for any other relief, the balance amount shall be cleared by way of 'ten' equal monthly instalments, the first of it shall be effected on or before the 20th of December, 2014, followed by similar installments, to be effected on or before the 20th of the succeeding months. The sale scheduled to be held tomorrow can go on, but confirmation of the sale shall be kept in abeyance for the time being; which shall be subject to satisfaction of the entire liability as aforesaid. It is also made clear that, if the petitioners commit any default in satisfying the timely instalments, the benefit granted by this Court will stand automatically withdrawn and the Bank will be free to proceed with further steps, from the stage where it stands now.

The writ petition is disposed of.

P.R. RAMACHANDRA MENON, JUDGE sp