Full payment of loan extinguishes bank's right to initiate further proceedings under SARFAESI Act.

JUDGMENT

At the request of the petitioner and the 2nd respondent, the 1st respondent Bank sanctioned a housing loan of ₹23,34,274/- (Rupees Twenty-Three Lakh Thirty-Four Thousand Two Hundred and Seventy-Four only) on 23.12.2013. The said loan was secured by creating a mortgage over immovable property having an extent of 2.43 Ares of land together with all improvements thereon, comprised in Re-Sy. Nos. 2927/1-3 and 2927/1 of Muttathara Village, Thiruvananthapuram Taluk. Owing to a slump in business and substantial expenses incurred towards the medical treatment of the 2nd respondent, the loan account became irregular and the petitioner could not remit the instalments promptly. Consequently, the respondent Bank classified the loan account as a Non-Performing Asset and initiated proceedings under the provisions of the SARFAESI Act . Aggrieved by the said proceedings, the petitioner has approached this Court.

2. When the matter was taken up for consideration today, the learned counsel for the petitioner submitted that the entire amount due to the Bank has been remitted and, consequently, the loan account stands closed.

In view of the above, there is no further dispute requiring adjudication, and accordingly, this writ petition is closed.

Sd/-