The judgment underscores the importance of timely repayment in loan agreements and the consequences of default.

JUDGMENT

The prayer in the above Writ Petition (Civil) is as follows:

“............ to stay all further proceedings with respect of collateral security property in pursuance EXT P4 notice, till the disposal of this writ petition.”

2. Heard Sri.P.K.Nijoy, learned counsel appearing for the petitioner and Smt.R.Rema, learned counsel appearing for the respondent (Bank of Baroda).

3. Smt.R.Rema, learned counsel appearing for the respondent (Bank of Baroda) would submit on the basis of instructions of her party that as of now, the total outstanding dues owed by the borrower, for whom the petitioner has stood as surety in the present loan transaction, comes to Rs.57,60,000/- as on date and that the respondent-Bank is prepared to give reasonable time to the petitioner to clear the entire dues and that the petitioner may pay a substantial amount of not less than Rs.15 lakhs, within one month and the balance dues may be cleared by him in six instalments, subject to payment of all applicable charges and interest thereon, etc.

4. Sri.P.K.Nijoy, learned counsel appearing for the petitioner would submit on the basis of instructions of his party that the petitioner is prepared to pay an amount of Rs.10 lakhs, within a period of one month and the balance outstanding dues will be cleared by him in eight equal monthly instalments.

5. Accordingly, after hearing both sides and taking into account the facts and circumstances of the case, it is ordered in the interest of justice that the petitioner shall pay an amount of Rs.10 lakhs on or before 31.01.2020 and the balance outstanding dues will be cleared by him in eight equal monthly instalments, subject to payment of all applicable charges and interest thereon and should also clear the regular EMIs in time and accordingly the following directions and orders are passed:

(i)The competent official of the respondent-Bank shall immediately furnish a comprehensive and authenticated statement of accounts pertaining to the instant loan transaction, so as to precisely and clearly show the total dues to be paid by the borrower in the above transaction and the details may also be shown in the said statement, as to how the said figures have been arrive at, to the petitioner and this may be done within one week.

(ii)The petitioner will clear the balance outstanding dues in eight equal monthly instalments, inclusive of all applicable charges and interest starting from 10.03.2020 and ending on 10.10.2020 subject to the condition that the petitioner should also pay the applicable charges and interest thereon.

(iii) In case, the petitioner complies with all the above conditions and clears the entire dues as aforestated, then the respondent Bank may take necessary steps to ensure that the loan account of the petitioner is regularised. Until then, further steps pursuant to the impugned proceedings shall be kept in abeyance. Further that the petitioner shall pay the regular EMIs in time.

(iv) On the other hand, if the petitioner commits default of any one of the instalments, then the benefit of the abovesaid directions will stand automatically vacated without any further orders of this Court, in which case, the respondent Bank will be at liberty to proceed further with the impugned steps from the stage where it has stopped. In such an eventuality it is also ordered that the petitioner will have to give up all his contentions that are otherwise available to him to be raised in appropriate proceedings before the competent fora.

With these observations and directions, the above Writ Petition (Civil) stands finally disposed of.

Sd/- ALEXANDER THOMAS JUDGE vgd APPENDIX PETITIONER'S/S EXHIBITS:

EXHIBIT P1 A TRUE COPY OF THE LAWYER NOTICE ISSUED TO THE PETITIONER DATED 18.9.2019.

EXHIBIT P2 A TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER TO THE 1ST RESPONDENT DATED 30.12.2019.

EXHIBIT P3 REPLY TO THE REPRESENTATION MADE TO THE

1ST RESPONDENT ISSUED BY HIM DATED

30.12.2019.

EXHIBIT P4 TRUE COPY OF NOTICE ISSUED BY THE ADVOCATE COMMIS