JUDGMENT

Dated this the 05^th day of January, 2023 The petitioners availed a cash credit facility, a funded term loan and a housing loan from the 2^nd respondent/bank. The petitioners having defaulted repayment towards the loans, the bank initiated SARFAESI proceedings. Simultaneously, revenue recovery proceedings are also initiated for realisation of the amount due under the cash credit facility and the funded term loan. Aggrieved, this writ petition is filed.

2. The records reveal that the revenue recovery proceedings are initiated for realisation of an amount of Rs.41,01,137/-.

3. Being so, the revenue recovery proceedings is per se not maintainable, in view of the settled legal position, as exposited in Sam J Mathews v. Deputy Tahsildar (RR) [2019 (3) KLT 641], that revenue recovery proceedings cannot be initiated for realisation of debts of more than Rs.10 lakhs. On that ground, Exts.P3 and P4 notices are liable to be set aside and I do so. At the same time, since amounts are admittedly due from the petitioners, there cannot be a complete exoneration from repayment.

4. Learned Counsel for the petitioners submitted that the petitioners are ready and willing to pay off the amount demanded, if opportunity to repay in installments is provided.

5. Learned Senior Counsel appearing for the bank submitted that, if at all any such opportunity is granted, that should be limited to the minimum. The writ petition is accordingly disposed of as under;

i. The petitioners are permitted to pay off the amount demanded in Ext.P2 with interest and costs if any, in 15 equated monthly installments.

ii. The first installment shall be paid on or before 15.02.2023 and the balance installments before the 15^th of every succeeding month.

iii. In the meanwhile, the petitioners can approach the bank seeking regularisation of the housing loan account. In such event, the bank shall take appropriate decision on the request.

iv. Default in repayment of any one of the installments will result in the benefit granted under this judgment being withdrawn and the bank being at liberty to continue the recovery proceedings.

v. If the installments are paid without default, the recovery proceedings shall be kept in abeyance.

Sd/-

V.G.ARUN JUDGE NB/5-1 APPENDIX OF WP(C) 39644/2022 PETITIONERS’ EXHIBITS EXHIBIT P1 TRUE COPY OF THE LAWYER NOTICE DATED 03-09-2022 ISSUED ON BEHALF OF THE 2ND RESPONDENT.

EXHIBIT P2 TRUE COPY OF THE NOTICE UNDER SEC. 13(2) OF SARFAESI ACT DATED 05-11-2022 ISSUED TO THE PETITIONERS BY THE 2ND RESPONDENT.

EXHIBIT P3 TRUE COPY OF THE DEMAND NOTICE NO.

RRC/2022/7463/11 DATED 22-11-2022 FOR ATTACHMENT OF THE MOVABLES ISSUED BY THE 1ST RESPONDENT.

EXHIBIT P4 TRUE COPY OF THE DEMAND NOTICE NO.

RRC/2022/7463/11 DATED 23-11-2022 ISSUED BY THE

1ST RESPONDENT FOR ATTACHING THE IMMOVABLE PROPERTY OF THE PETITIONERS AND RESPONDENTS 5 TO 8.

RESPONDENTS’ EXHIBITS: NIL